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 a requirement for surety companies to provide written notice of bond cancellation to both the principal and the commissioner at least thirty days prior to the effective cancellation date, replacing the previous method of notification via certified mail with electronic communication. It also establishes automatic license suspensions for mortgage lenders, mortgage correspondent lenders, and mortgage brokers 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 their license status.

Additionally, the bill updates regulations concerning the use of names and addresses by licensees, prohibiting the use of any name other than the legal name or an approved fictitious name, and requiring that any changes be filed at least thirty days in advance. It also introduces new provisions for mortgage servicer registrations, including the requirement for applicants to maintain surety bonds and fidelity coverage, and outlines the process for cosigner release on private student education loans, mandating annual notifications to borrowers and cosigners about eligibility criteria. Overall, the amendments aim to enhance regulatory compliance, consumer protection, and transparency in the financial services sector, particularly in mortgage and student loan servicing.

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