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 introduces new requirements mandating that surety companies 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 outlines the consequences of bond cancellation, including automatic license suspensions for mortgage lenders and brokers, while allowing for reinstatement if a new bond or reinstatement letter is submitted before the cancellation date. Additionally, the bill revises regulations regarding the use of names and addresses by licensees, ensuring compliance with updated requirements.

The bill further enhances the regulatory framework for mortgage servicers and private education lenders by establishing clearer definitions, updating licensing requirements, and introducing new provisions for cosigner release on private student loans. It mandates that servicers provide detailed disclosures to borrowers and cosigners, including information on eligibility for cosigner release and the application process. The bill also empowers the commissioner to take enforcement actions against violators, including the ability to suspend or revoke registrations. Overall, Substitute Senate Bill No. 1257 aims to streamline regulatory processes, enhance consumer protections, and ensure compliance within the lending and mortgage servicing sectors.

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