Substitute Bill No. 1257 seeks to amend existing laws related to consumer credit and commercial financing, with a particular focus on the cancellation of surety bonds and the regulation of mortgage servicers and private education loan creditors. The bill mandates that surety companies provide written notices of bond cancellations electronically at least thirty days prior to the cancellation date, replacing the previous requirement for certified mail notifications. It also establishes automatic suspension of licenses for mortgage lenders and brokers upon bond cancellation unless a reinstatement letter or new bond is submitted. Additionally, the bill clarifies the naming and licensing requirements for businesses, prohibiting the use of names other than the legal or approved fictitious name, and outlines the process for changing a licensee's name or address.

Furthermore, the bill introduces new regulations for private education loan creditors, requiring them to provide borrowers with comprehensive information regarding their rights, particularly concerning cosigner release eligibility. It establishes a framework for shared appreciation agreements, mandating clear disclosures to borrowers about potential risks and financial details. The bill also revises enforcement mechanisms, allowing the commissioner to suspend or revoke registrations for violations, and emphasizes the importance of transparency and accountability in the mortgage lending process. Overall, these amendments aim to enhance regulatory oversight, consumer protection, and compliance within the financial services sector, with most provisions set to take effect on October 1, 2025.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 181:
JUD Joint Favorable: