OLR Bill Analysis
AN ACT CONCERNING ELIGIBILITY FOR MORTGAGE FINANCING FOR INDIVIDUALS SERVING IN THE MILITARY RESERVES
This bill requires financial institutions and federal banks to maintain on file the mortgage applications of members of the U. S. armed forces reserves and National Guard members who are called into active duty after submitting an application but before the financial institution or federal bank makes a determination on it. If an applicant returns from active duty and submits a statement that there has been no material change in his income, assets, debts, or employment, the bill requires the financial institution or federal bank to finish processing the loan application in accordance with the same terms and conditions made available to the applicant at the time of his initial application. The bill also requires the financial institution or federal bank to offer to the applicant any different terms and conditions it is offering to the public when the applicant returns from active duty. The bill applies to applications for home purchase loans, home improvement loans, and other mortgage loans on one-to-four family, owner-occupied, residential real property.
EFFECTIVE DATE: July 1, 2003
COMMITTEE ACTION
Banks Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |