AN ACT CONCERNING REFERRAL FEES FOR MORTGAGE SERVICES RENDERED OR RECEIVED.


General Assembly		*Proposed Bill No. 5344*
*January Session, 2007*		LCO No. 741

Referred to Committee on Banks
Introduced by:
REP. HARKINS, 120^th Dist.

AN ACT CONCERNING REFERRAL FEES FOR MORTGAGE SERVICES RENDERED OR RECEIVED.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That the general statutes be amended to require the Department of Banking, in consultation with the Department of Consumer Protection, to adopt regulations, in accordance with chapter 54 of the general statutes, to require both mortgage brokers and real estate agents to attach to any mortgage documents at closing a disclosure that they are neither giving nor receiving any referral fee or any other form of compensation or remuneration for mortgage services rendered or received. Failure to provide such disclosure shall be a basis for revocation of any license to provide such services.

Statement of Purpose:

To prevent mortgage brokers from giving and real estate agents from receiving any fee, compensation or remuneration for referring business to each other.