OLR Bill Analysis
sHB 5371 (As Amended by House "A"*)
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 for two years and two months the mortgage application of a member of the U. S. armed forces reserves or National Guard who is called into active duty after submitting an application but before a financial institution or federal bank makes a determination on it. The bank or other financial institution must maintain the application on file if, within 30 days after being called into active duty, the member submits a written statement to the financial institution or federal bank (1) indicating that he has been called into active duty and (2) requesting that the bank maintain his application on file.
If an applicant returns from active duty within two years after submitting his mortgage application and, within 60 days after discharge from active duty, submits a written 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 his 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 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.
*House Amendment "A" removes requirements from the original bill that (1) the bank retain the armed forces reserve or National Guard member's application on file indefinitely and (2) the member submit a statement upon his return from duty that there has been no material change in his financial condition. Instead, it substitutes the time limits and required statements described above.
EFFECTIVE DATE: July 1, 2003
COMMITTEE ACTION
Banks Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |