Substitute Senate Bill No. 1257, also known as Public Act No. 25-115, amends various sections of the general statutes related to consumer credit and commercial financing, with a particular focus on the cancellation of surety bonds. The bill requires surety companies to provide written notice of bond cancellation to both the principal and the commissioner at least thirty days prior to the cancellation date, replacing the previous requirement for certified mail with electronic notification. It also establishes that licenses for mortgage lenders, mortgage correspondent lenders, and mortgage brokers will be automatically suspended upon bond cancellation unless specific conditions, such as submitting a reinstatement letter or a new bond, are met. The commissioner is tasked with notifying affected licensees of their suspension and offering them a hearing opportunity regarding license revocation or renewal.

Additionally, the bill introduces new regulations for mortgage servicer registrations, requiring applications for renewal to be submitted annually within a specified timeframe and mandating that applicants obtain certain types of insurance coverage. It clarifies the conditions under which licensees may change their legal names or addresses, ensuring compliance with regulatory requirements. The bill also enhances protections for private student loan borrowers and cosigners by mandating clear communication regarding cosigner release criteria and prohibiting negative consequences during the application review period. Overall, the amendments aim to streamline processes, enhance regulatory oversight, and improve consumer protections in the financial services sector.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 181:
JUD Joint Favorable:
Public Act No. 25-115: