Raised Bill No. 187 is a comprehensive piece of legislation that seeks to amend various sections of the general statutes related to consumer credit, mortgage lending, debt negotiation, and financial services regulation, with an effective date of October 1, 2024. The bill modifies the requirements for surety bond cancellation by surety companies, necessitating at least thirty days' written notice to the commissioner and the licensee. It also outlines the consequences of bond cancellation, which include the automatic suspension of licenses for mortgage lenders, brokers, and the inactivation of licenses for mortgage loan originators. The bill provides for the commissioner to notify affected parties of suspensions and initiate revocation proceedings, with an opportunity for a hearing. Additionally, the bill addresses changes in the legal names or addresses of licensees, requiring them to file changes with the system and provide a bond rider reflecting the new legal name at least thirty days prior to the change.
The bill also revises the definition of "sales finance company" and exempts certain entities from mortgage servicer licensing requirements. It introduces provisions for mortgage lenders to register as exempt mortgage servicer registrants and details the expiration and renewal process for mortgage servicer registrations. The bill amends section 36a-719c to require mortgage servicers and registrants to maintain surety bonds, fidelity bonds, and errors and omissions coverage, with the principal amounts varying based on servicing activity volume. Furthermore, the bill sets forth the process for bond and coverage cancellation, the consequences of such cancellations, and the commissioner's authority to require additional bonds under certain conditions. It also includes new requirements for entities servicing private student education loans to provide information to borrowers and cosigners about cosigner release eligibility and the appeal process for denials of cosigner release. The bill repeals and replaces certain sections of the general statutes to update legal requirements for small loan licensing, mortgage servicing, and student loan servicing, and redefines terms to reflect current practices and federal requirements.
Statutes affected: Raised Bill: