Connecticut Seal

General Assembly

 

Substitute Bill No. 5577

    February Session, 2008

*_____HB05577FIN___042208____*

AN ACT CONCERNING RESPONSIBLE LENDING AND ECONOMIC SECURITY.

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

Section 1. (NEW) (Effective July 1, 2008) As used in sections 1 to 8, inclusive, of this act:

(1) "Authority" means the Department of Economic and Community Development;

(2) "Commissioner" means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;

(3) "Mortgage assistance program committee" or "committee" means the committee established in section 2 of this act;

(4) "Mortgage" means a mortgage deed or other instrument which constitutes a first or secondary consensual lien upon any interest in one to four family residential real property located in this state, which is, or when the loan is made, intended to be occupied by the borrower as a principal residence. It includes, but is not limited to, a nonprime home loan, as defined in section 9 of this act;

(5) "Mortgagor" means the owner-occupant of one or four family residential real property located in this state who is also the borrower under a mortgage encumbering such real property;

(6) "Mortgagee" means the original lender under a mortgage, or its successors, or an assignee of a mortgage;

(7) "REAL program" or "REfinance to an Affordable Loan program" means the loan program established pursuant to subsection (d) of section 2 of this act;

(8) "HERO program" or "Homeowner's Equity Recovery Opportunity Loan program" means the loan program established pursuant to subsection (e) of section 2 of this act; and

(9) "EMAP" or "Emergency Mortgage Assistance program" means the loan program established pursuant to subsection (f) of section 2 of this act.

Sec. 2. (NEW) (Effective July 1, 2008) (a) There is established a mortgage assistance program committee. The mortgage assistance program committee shall be comprised of ten members. One member shall be appointed by each of the following: (1) The Governor, (2) the speaker of the House of Representatives; (3) the majority leader of the House of Representatives; (4) the minority leader of the House of Representatives; (5) the president pro tempore of the Senate; (6) the majority leader of the Senate; (7) the minority leader of the Senate; (8) the Banking Commissioner; (9) the House of Representatives chairperson of the joint standing committee of the General Assembly having cognizance of matters relating to banks; and (10) the Senate chairperson of the joint standing committee of the General Assembly having cognizance of matters relating to banks. The mortgage assistance program committee members shall elect a chairperson from among the members of the committee.

(b) The mortgage assistance program committee shall develop written standards for determining eligibility for mortgage assistance under sections 1 to 4, inclusive, of this act and such procedures as necessary to otherwise implement the provisions of sections 1 to 6, inclusive, of this act. Such standards shall, at a minimum, establish: (1) The standards for qualifying mortgages and mortgagors for mortgage assistance available under sections 1 to 4, inclusive, of this act; (2) the scope and nature of the mortgage assistance available under sections 1 to 4, inclusive, of this act; and (3) the terms and conditions under which the authority will provide, and be repaid for, mortgage assistance under sections 1 to 4, inclusive, of this act. Procedures necessary to implement the provisions of sections 1 to 6, inclusive, of this act shall, at a minimum, include development of a form for application for relief and procedures for the committee's determination of eligibility. On or before October 1, 2008, the standards and procedures to be developed by the committee under this subsection shall be adopted by the authority in regulations in accordance with chapter 54 of the general statutes.

(c) The committee shall evaluate, utilizing the standards and procedures developed by the committee pursuant to subsection (b) of this section, the eligibility of applicants for mortgage assistance in the following programs in the following order: (1) The REfinance to an Affordable Loan program or REAL program as described in subsection (d) of this section; (2) the Homeowners' Equity Recovery Opportunity Loan program or HERO program, as described in subsection (e) of this section; and (3) the emergency mortgage assistance program or EMAP, as described in subsection (f) of this section.

(d) The committee shall develop and implement the REAL program in accordance with this subsection. Such program shall offer thirty-year fixed rates at one-quarter of one per cent above the Connecticut Housing Finance Authority's regular rate and shall combine one hundred per cent financing with flexible credit underwriting. The committee shall be responsible for developing written standards for determining eligibility for refinancing under the program and such procedures as necessary to otherwise implement the provisions of this subsection in accordance with subsection (b) of this section. All borrowers approved for the program shall attend in-person financial counseling at a committee-approved agency. The committee shall make refinancing available in accordance with the following criteria:

(1) The combined gross annual income of all borrowers may not exceed one hundred twenty thousand dollars, unless certain exceptions specified by the committee apply;

(2) A borrower may be no more than fifty-nine days past due on his or her existing mortgage;

(3) A borrower has a credit score of at least six hundred twenty or meet all of the following conditions: (A) The borrower's mortgage payment has been adjusted in the past twelve months to a higher interest rate or a fully amortized payment and (i) the borrower has made no more than two, thirty-day late payments since the adjustment, and (ii) the borrower's mortgage payment history twelve months prior to the adjustment shows no history of late payments; and (B) the borrower's credit history of debt other than the mortgage shows no more than three, thirty-day late payments twelve months prior to the adjustment of the mortgage;

(4) The borrower with a credit score of six hundred twenty or higher may borrow up to one hundred per cent of his or her home's value based upon a current appraisal, and a borrower with a credit score of less than six hundred twenty may borrow up to ninety-five per cent of his or her home's value;

(5) The REAL loan may be used to finance items such as subordinate mortgages, closing costs, prepayment penalties, delinquent property taxes and arrearages that have occurred within the past twelve months after the loan reset to a higher monthly payment amount;

(6) For a borrower with a credit score of six hundred twenty or higher, the borrower's total debt costs may not be more than fifty per cent of his or her total gross monthly income, and for a borrower with a credit score of less than six hundred twenty, the total debt costs may not be more than forty-five per cent of his or her total gross monthly income. For purposes of this subdivision, "total debt costs" includes, but is not limited to, credit cards, motor vehicle loans, installment loans, REAL program mortgage payments and student loans.

(e) (1) The committee shall develop and implement the HERO program in accordance with this subsection. Such program shall offer up to one hundred per cent financing through the following mechanism: The authority shall purchase loans directly from lenders and then place borrowers on an affordable repayment plan. The committee shall be responsible for developing written standards for determining eligibility for refinancing under this program and such procedures as necessary to otherwise implement the provisions of this subsection in accordance with subsection (b) of this section. The committee shall make the HERO program available to eligible applicants who are not otherwise eligible for the REAL program described in subsection (d) of this section or another mortgage refinance product available in the general market due to credit issues or owing more than the home's current appraised value. All borrowers approved for the program shall attend in-person financial counseling at a committee-approved agency.

(2) A HERO loan (A) shall provide a fixed-rate mortgage for up to thirty years in an amount up to one hundred per cent of the current value of the borrower's home; (B) shall provide an interest rate at one-quarter of one per cent above the Connecticut Housing Finance Authority's regular rate; (C) shall provide a loan that is serviced by the authority; (D) shall have property taxes and insurance, including mortgage insurance, homeowner's insurance and, if applicable, flood insurance included in the borrower's monthly payment amount; and (E) may be used to pay off the current mortgage debt, closing costs, prepayment penalties and delinquent property taxes.

(3) The committee shall make a HERO loan available in accordance with the following criteria: (A) The combined gross annual income of all borrowers may not exceed one hundred twenty thousand dollars, unless certain exceptions specified by the committee apply; (B) the borrower has made an effort to meet his or her financial obligations to the best of his or her ability; (C) the borrower has sufficient and stable income to support timely repayment of the HERO loan in regular, monthly installments and the borrower agrees to make monthly mortgage payments by automatic payment directly from his or her bank account; (D) the borrower has legal title to the mortgaged property and resides in it as his or her permanent residence; (E) if the borrower has stopped making monthly payments, he or she is able to account for his or her cash flow by showing how he or she escrowed, saved or redirected those funds; and (F) the HERO loan shall be in first lien position.

(f) The committee shall develop and implement EMAP in accordance with this subsection. Such program shall offer at a minimum, two types of mortgage assistance loans: (1) Noncontinuing mortgage assistance loans, in which a mortgage is brought current to a specific date and the mortgagor is responsible for making all subsequent payments to the mortgagee along with any repayment to EMAP; and (2) continuing mortgage assistance loans, in which the mortgagor remits the mortgagor's designated monthly payment to EMAP, and the authority combines the amount sent by the mortgagor with EMAP funds and forwards the full monthly mortgage payment directly to the mortgagee on the mortgagor's behalf. The committee shall ensure that EMAP includes provision of no-interest loans and prepayment penalty loans. A prepayment penalty loan made by the authority shall permit the authority to secure a secondary lien on the property securing the mortgagor's new loan. The committee shall be responsible for developing written standards for determining eligibility for refinancing under this program and such procedures as necessary to otherwise implement the provisions of this subsection in accordance with subsection (b) of this section. EMAP shall be available to eligible applicants who are not otherwise eligible for the REAL program described in subsection (d) of this section or the HERO program described in subsection (e) of this section. All borrowers approved for the program shall attend in-person financial counseling at a committee-approved agency. For the purposes of this subsection, "prepayment penalty loans" mean loans that involve payment by the authority of any prepayment penalties that a mortgagor may incur in order to terminate its mortgage in connection with the mortgagor securing a more favorable loan.

(g) The committee shall establish, no later than October 1, 2008, hotlines or other programs or procedures to provide information about the mortgage assistance programs established by sections 1 to 4, inclusive, of this act, and to assist eligible mortgagors to renegotiate mortgages, to engage foreclosure consultants, or to provide for any other assistance that the committee deems appropriate.

(h) The mortgage assistance programs described in sections 1 to 4, inclusive, of this act shall be funded by state bonding and repayment of loans provided by such programs.

Sec. 3. (NEW) (Effective July 1, 2008) (a) On and after October 1, 2008, the committee shall receive applications for, and make determinations of eligibility for, REAL program, HERO program and EMAP. The committee shall make its determination of eligibility no later than thirty calendar days after receipt of the mortgagor's application. Approved loans shall move to closing no later than forty-five days after the committee's determination of loan eligibility. No mortgage assistance pursuant to said programs shall be provided unless the committee finds that the committee's standards for eligibility are satisfied.

(b) The mortgagor shall apply for mortgage assistance pursuant to section 2 of this act on the form prescribed by the committee. The mortgagor shall complete and sign the application subject to the penalty for false statement under section 53a-157b of the general statutes.

(c) The mortgagor shall provide the committee with full disclosure of all assets and liabilities, whether singly or jointly held, and all household income regardless of source.

Sec. 4. (NEW) (Effective July 1, 2008) (a) If the committee determines that a mortgagor is eligible for REAL program, HERO program or EMAP, the committee shall authorize payments to be made to the mortgagor by the authority in accordance with the applicable program.

(b) Any mortgagor who misrepresents any financial or other material information in conjunction with the filing of an application for REAL program, HERO program or EMAP, or any modification of such assistance, may be denied assistance and required to immediately repay any amount of assistance already provided.

(c) The authority may take any remedial action permitted under law or equity that it deems appropriate to recover mortgage assistance provided pursuant to section 2 of this act when the mortgagor fails to repay such assistance under the terms and conditions established by the committee.

Sec. 5. (NEW) (Effective July 1, 2008) (a) On and after October 1, 2008, a mortgagee who desires to foreclose upon a mortgage shall give notice to the mortgagor by registered, or certified mail, postage prepaid at the address of the property that is secured by the mortgage. No such mortgagee may commence a foreclosure of a mortgage for thirty days after mailing such notice. Such notice shall, at a minimum, advise the mortgagor of the mortgagor's delinquency or other default under the mortgage and shall advise the mortgagor of its right to appeal to the authority for assistance under the REAL program, the HERO program, or EMAP. The contents of the notice required by this subsection shall be determined by the committee. Mortgagors who desire to apply for assistance pursuant to said programs shall meet with designated counseling agencies no later than thirty days after receipt of the notice or, if delivery of the notice was refused, no later than thirty days after the date delivery of the notice was refused, whichever is earlier, in order to begin the application process. The counseling agency shall prepare the application and submit the initial paperwork to the authority. Foreclosure actions by mortgagees shall cease as long as the mortgagor files a timely application with the authority in accordance with this section.

(b) A mortgagor who (1) received notice under subsection (a) of this section, (2) applied to the authority for relief under sections 1 to 4, inclusive, of this act, and (3) was denied such relief by the authority, shall have a right to seek a continuing moratorium of the foreclosure action pursuant to this subsection and subsection (c) of this section. Such right shall be exercised by the mortgagor by submission of an application to the commissioner under subsection (c) of this section no later than thirty days after the postmark date on the notice of the authority's denial of the mortgagor's request for mortgage assistance pursuant to section 2 of this act.

(c) On or before October 1, 2008, the commissioner shall adopt regulations in accordance with chapter 54 of the general statutes to establish criteria for the granting of foreclosure action moratoriums. The commissioner shall grant requests by mortgagors for such moratoriums on a case-by-case basis.

(d) If the commissioner grants the mortgagor's request for a moratorium, the commissioner shall notify the mortgagor and the mortgagee in writing, setting forth the basis for the commissioner's determination and the term of the moratorium, and the mortgagee shall not commence a foreclosure action until the end of the term of the moratorium as stated in the notice. The term of the moratorium shall not exceed six months. In addition, the mortgagee and mortgagor shall be required by the terms of the commissioner's notice to meet no later than ninety days after receipt of the commissioner's notice to attempt to renegotiate the terms of the loan. If the mortgagor and the mortgagee are unable to renegotiate the terms of the loan during the period of the moratorium, upon the lapse of moratorium, the mortgagee may take any legal action to enforce the mortgage without further restrictions or requirements.

(e) If the commissioner denies the mortgagor's request for a moratorium, the mortgagee may take any legal action to enforce the mortgage without further restrictions or requirements.

Sec. 6. (NEW) (Effective July 1, 2008) The Department of Banking shall develop a program, using funds available to the authority pursuant to section 8 of this act and transferred by the authority to the Department of Banking for the purposes of implementing this section, to purchase foreclosed residential real property located in this state for resale for the purposes of providing affordable and supportive housing, provided the Department of Banking shall only purchase such foreclosed residential real property if (1) the property is sold at a discount, and (2) the transfer of funds, the purchase of the property and the resale of the property are approved in advance by the mortgage assistance committee established by section 2 of this act.

Sec. 7. (NEW) (Effective July 1, 2008) All moneys received by the authority under sections 1 to 6, inclusive, of this act shall be deposited in such funds or accounts as the authority may establish from time to time for such purpose and be used solely for the purposes of the programs established pursuant to sections 1 to 6, inclusive, of this act.

Sec. 8. (Effective July 1, 2008) (a) The Connecticut Housing Finance Authority shall transfer to the authority forty million dollars of the Connecticut Housing Finance Authority's proceeds from bond sales prior to 1986. The authority shall use the forty million dollars transferred to it by the Connecticut Housing Finance Authority for the purpose of funding the REAL program and the HERO program established in section 2 of this act.

(b) For the purposes described in subsection (c) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate one hundred million dollars, provided (1) thirty-five million dollars shall be effective July 1, 2008, (2) thirty-five million dollars shall be effective July 1, 2009, (3) fifteen million dollars shall be effective July 1, 2010, and (4) fifteen million dollars shall be effective July 1, 2012.

(c) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (b) of this section, shall be used by the authority for EMAP established in section 2 of this act and for the program described in section 6 of this act.

(d) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

Sec. 9. (NEW) (Effective July 1, 2008) (a) As used in this section:

(1) "Commissioner" means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;

(2) "Lender" means any person or entity originating a mortgage who is licensed by the Department of Banking under chapter 668 of the general statutes or the 2008 supplement to the general statutes, or their successors or assigns;

(3) "Mortgage broker" means any person who (A) for a fee, commission or other valuable consideration, negotiates, solicits, arranges, places or finds a mortgage, and (B) is licensed by the Department of Banking under chapter 668 of the general statutes or the 2008 supplement to the general statutes, or their successors or assigns;

(4) "Nonprime home loan" means any loan or extension of credit, excluding an open-end line of credit subject to 12 CFR 226.5b, as amended from time to time, and further excluding a reverse mortgage transaction, as defined in 12 CFR 226.33, as amended from time to time:

(A) In which the borrower is a natural person;

(B) The proceeds of which are to be used primarily for personal family or household purposes;

(C) In which the loan is secured by a mortgage upon any interest in one to four family residential property located in this state which is, or when the loan is made, intended to be used or occupied by the borrower as a principal residence;

(D) In which the principal amount of the loan does not exceed the then current conforming loan limit, as established from time to time by the Federal National Mortgage Association; and

(E) In which all of the following apply:

(i) The difference between the APR for the loan or extension of credit and the yield on United States Treasury securities having comparable periods of maturity is either equal to or greater than (I) three percentage points, if the loan is a first mortgage loan, or (II) five percentage points, if the loan is a secondary mortgage loan. For purposes of such calculation, without regard to whether the loan is subject to or reportable under the provisions of the federal Home Mortgage Disclosure Act, 12 USC 2801 et. seq., the difference between the APR and the yield on United States Treasury securities having comparable periods of maturity shall be determined using the same procedures and calculation methods applicable to loans that are subject to the reporting requirement of the federal Home Mortgage Disclosure Act, as those procedures and calculation methods are amended from time to time, provided the yield on United States Treasury securities is determined as of the fifteenth day of the month prior to the application for the loan; and

(ii) The difference between the APR for the loan and the conventional mortgage rate is either equal to or greater than (I) one and three-quarters percentage points, if the loan is a first mortgage loan, or (II) three and three-quarters percentage points if the loan is a secondary mortgage loan. For purposes of such calculation, the "conventional mortgage rate" means the most recent daily contract interest rate on commitments for fixed-rate mortgages published by the board of governors of the federal reserve system in its statistical release H.15, or any publication that may supersede it, during the week in which the interest rate for the loan is set. For the purpose of subparagraphs (E)(i) and (ii) of this subdivision, the dollar amount of any bona fide discount points need not be included when calculating the APR;

(5) "Residential property" means improved real property used or occupied, or intended to be used or occupied, for residential purposes;

(6) "First mortgage loan" means a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a natural person, the proceeds of which are to be used primarily for personal, family or household purposes, and that is secured by a first mortgage upon any interest in one to four family owner-occupied residential property located in this state that is not subject to any prior mortgages and the renewal or refinancing of such a loan;

(7) "Secondary mortgage loan" means: (A) A loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a natural person, the proceeds of which are to be used primarily for personal, family or household purposes, and that is secured in whole or in part by a mortgage upon any interest in one to four family owner-occupied residential property located in this state, provided such property is subject to one or more prior mortgages, and (B) the renewal or refinancing of any existing loan or extension of credit described in subparagraph (A) of this subdivision;

(8) "Bona fide discount points" means the points that a borrower agrees to pay for the express purpose of reducing the interest rate applicable to a mortgage loan and that results in a bona fide reduction of the interest rate.

(b) Lenders and mortgage brokers shall have a fiduciary duty to borrowers. The fiduciary duty to borrowers of a nonprime home loan shall include an obligation to ensure that borrowers have sufficient information to clearly understand the terms of the nonprime home loan and the associated risks in order to make an informed nonprime home loan product choice. The fiduciary duty to borrowers of a nonprime home loan shall include, but shall not be limited to, the duties and obligations imposed by this section.

(c) The Banking Commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to establish: (1) A suitability standard that lenders and mortgage brokers shall use to determine which nonprime home loan products are most suitable for borrowers; and (2) the minimum verification and documentation requirements for qualifying borrowers for a nonprime home loan. Such regulations shall include, but shall not be limited to, a mandate that lenders verify income by the best means of documentation available, including, but not limited to, payroll receipts, bank records, tax returns or other similar reliable documents, and that lenders consider the reasonable ability of the borrower to repay the nonprime home loan (A) according to a fully amortizing payment schedule, and (B) taking into account all requirements of the loan, including, but not limited to, principal, interest, real estate taxes, insurance, assessments, any required homeowner or condominium fees, and any subordinate mortgages including those that will be made contemporaneously to the same borrower.

(d) When offering a nonprime home loan, lenders shall notify all potential borrowers in writing that they are required to attend a course or courses accredited by the Department of Banking on nonprime home loans and provide evidence of completion of such course before the mortgage may be executed. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to provide procedures for accrediting the courses required by this section and for issuance of written certificates of completion by entities providing such accredited courses.

(e) A lender that offers a nonprime home loan shall give mortgagors a notice which reads as follows:

"NOTICE TO BORROWER

If you obtain this loan, the lender will have a mortgage on your home. You could lose your home and any money you put into it if you do not meet your obligations under the loan.

Mortgage loan rates and closing costs and fees vary based on many factors, including your particular credit and financial circumstances, your employment history, the loan-to-value requested and the type of property that will secure your loan. The loan rate and fees could also vary based on which lender or broker you select. As an obligor, you should shop around and compare loan rates and fees. You should also consider consulting a qualified independent credit counselor or other experienced financial advisor regarding the rate, fees and provisions of this mortgage loan before you proceed. A list of qualified counselors is available by contacting the Department of Economic and Community Development.

You are not required to complete this loan agreement merely because you have received these disclosures or have signed a loan application.

Remember, property taxes and homeowner's insurance are your responsibility. Not all lenders provide escrow services for these payments. You should ask your lender about these services. Also, your payments on existing debts contribute to your credit ratings. You should not accept any advice to ignore your regular payments to your existing creditors. The agency has determined that the list it will provide upon request will be the same list of counseling agencies as are approved to participate in the agency's mortgage assistance program."

(f) A lender shall not make a nonprime home loan unless:

(1) The lender documents, to the extent required by and in the form required by the regulations adopted by the commissioner pursuant to subsection (c) of this section, that the mortgagor qualifies for the loan at its highest interest rate over the term of the loan;

(2) The lender requires and collects the monthly escrow of property taxes, insurance, and homeowners or condominium fees;

(3) The potential mortgagor completes the required courses under subsection (d) of this section, as evidenced by certificates of completion; and

(4) The lender discloses to all potential borrowers a list of nonprofit housing counselors approved by the federal Department of Housing and Urban Development.

(g) A lender shall not offer a nonprime home loan that contains:

(1) A prepayment penalty provision;

(2) A provision that increases the interest rate after default; or

(3) A provision requiring a borrower, whether acting individually or on behalf of others similarly situated, to assert any claim or defense in a forum that: (A) Does not have to adhere to the rules of evidence; (B) does not have to apply the law as set forth in the general statutes or common law; (C) limits in any way any claim or defense the borrower may have; or (D) is less convenient, more costly, or more dilatory for the resolution of a dispute than a judicial forum established in this state where the borrower may otherwise properly bring a claim or defense.

(h) Any nonprime home loan executed in violation of this section shall be a breach of fiduciary duty and an unfair or deceptive trade practice under chapter 735a of the general statutes, unless:

(1) Not later than ninety days after the date of the loan closing and prior to the commencement of any action against the lender under this section, the borrower is notified by the lender of the compliance failure, the lender tenders appropriate restitution, and the lender offers, at the borrower's option, either to (A) make the nonprime home loan compliant with this section, or (B) change the terms of the mortgage in a manner beneficial to the borrower so that the mortgage will no longer be considered a nonprime home loan subject to the provisions of this section. A lender shall act within a reasonable period of time following the borrower's election of remedy.

(2) The compliance failure is not intentional and results from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid such errors, and not later than one hundred twenty days after the date of discovery of the compliance failure and prior to the commencement of any action against the lender under this section, the borrower is notified of the compliance failure, the lender tenders appropriate restitution, and the lender offers, at the borrower's option, either to (A) make the nonprime home loan comply with this section, or (B) change the terms of the nonprime home loan in a manner beneficial to the borrower so that the mortgage will no longer be considered a nonprime home loan subject to the provisions of this section. A lender shall act within a reasonable period of time following the borrower's election of remedy. For the purposes of this subdivision, the phrase "bona fide error" includes, but is not limited to, a clerical, calculation, printing, computer malfunction or programming error, but does not include an error of legal judgment with respect to a person's obligations under this section.

Sec. 10. (NEW) (Effective July 1, 2008) As used in sections 10 to 15, inclusive, of this act:

(1) "Mortgage broker" means any person who (A) for a fee, commission or other valuable consideration, negotiates, solicits, arranges, places or finds a mortgage, and (B) is licensed by the Department of Banking under chapter 668 of the general statutes or the 2008 supplement to the general statutes, or their successors or assigns;

(2) "Commissioner" means the Banking Commissioner and, with respect to any function of the commissioner, includes any person authorized or designated by the commissioner to carry out that function;

(3) "Lender" means any person or entity originating a mortgage who is licensed by the Department of Banking under chapter 668 of the general statutes or the 2008 supplement to the general statutes, or their successors or assigns; and

(4) "Mortgage" means a mortgage deed or other instrument that constitutes a first or secondary consensual lien upon any interest in one to four family residential real property located in this state, that is, or when the loan is made, intended to be occupied by the borrower as a principal residence. "Mortgage" includes, but is not limited to, a nonprime home loan, as defined in section 9 of this act.

Sec. 11. (NEW) (Effective July 1, 2008) (a) For the purposes of this subsection, a "tangible benefit to the borrower" means: (1) Cash back at the closing of the refinanced mortgage, in the amount of no less than five per cent or more of the appraised value of the home securing the mortgage, or (2) a five per cent or more reduction in the borrower's monthly mortgage payment without a significant extension of the term of the loan. A lender shall not offer a refinanced mortgage unless the refinanced mortgage will provide a tangible benefit to the borrower. A lender shall not take any action that recommends or encourages a default on an existing mortgage or other debt prior to and in connection with the closing or planned closing of a new mortgage that refinances all or any portion of the existing loan or debt.

(b) A lender may not finance, directly or indirectly in connection with a mortgage, any credit life, credit disability, credit unemployment or credit property insurance or any other life or health insurance or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that insurance premiums or debt cancellation or suspension fees calculated and paid on a monthly basis or through regularly scheduled periodic payments shall not be considered financed by the lender for the purposes of this subsection.

(c) If all defaults in connection with a residential mortgage are cured no later than ninety days after the initiation of any action to foreclose, the lender shall take steps as necessary to terminate the foreclosure proceeding or other action. The lender may require that the borrower pay any reasonable costs actually incurred by the lender before the curing of the default. The curing of the default reinstates the borrower to the same position as if the default had not occurred and nullifies, as of the date of the cure, any acceleration of any obligation under the security instrument or note arising from the default. For purposes of this subsection, "cure", "cured" or "curing" means payment of arrearages.

Sec. 12. (NEW) (Effective July 1, 2008) A mortgage broker shall: (1) Use reasonable care, skill and diligence in performing the broker's duties; (2) make reasonable efforts to secure a loan that is in the best interests of the borrower considering all the circumstances, including, but not limited to, the rates, points, fees, charges, costs and product type; and (3) ensure that the cost of credit is appropriate considering the borrower's level of creditworthiness.

Sec. 13. (NEW) (Effective July 1, 2008) (a) For the purposes of this section, "yield spread premium" means any amount to be paid by the lender to the broker in connection with a mortgage.

(b) A mortgage broker shall clearly and conspicuously disclose to the borrower any yield spread premium in accordance with this subsection. In addition to providing the mortgagor with a copy of any written broker agreement, such disclosure shall be made in advance of the execution of a mortgage and shall:

(1) State the presence and amount of a yield spread premium;

(2) State the amount of money that the yield spread premium costs the borrower; and

(3) Be in writing in a separate document that complies with the plain language requirements set forth in section 42-152 of the general statutes.

Sec. 14. (NEW) (Effective July 1, 2008) (a) A mortgage broker shall not influence residential real estate appraisals. For the purposes of this section, "influence residential real estate appraisals" includes, but is not limited to: (1) Refusal, or intentional failure, to pay an appraiser for an appraisal that reflects a fair market value estimate that is less than the sale contract price; or (2) refusal, or intentional failure, to utilize, or encouraging other mortgage brokers not to utilize, an appraiser based solely on the fact that the appraiser provided an appraisal reflecting a fair market value estimate that was less than the sale contract price.

(b) The commissioner may, upon a verified complaint in writing of any person, if such complaint or such complaint together with evidence, documentary or otherwise, presented in connection with such complaint, make out a prima facie case of a violation of the provisions of subsection (a) of this section, investigate the actions of a mortgage broker. If a mortgage broker violates the provisions of subsection (a) of this section, the commissioner may temporarily suspend or permanently revoke a license issued under the provisions of chapter 668 of the general statutes or the 2008 supplement to the general statutes after notice and hearing in accordance with section 36a-24 and chapter 54 of the general statutes. In addition to or in lieu of such suspension or revocation, the commissioner may impose a civil penalty of not more than one thousand dollars for any violation of the provisions of subsection (a) of this section.

Sec. 15. (NEW) (Effective July 1, 2008) (a) A real estate broker or real estate salesperson licensed under chapter 392 of the general statutes shall not influence residential real estate appraisals. For the purposes of this section, "influence residential real estate appraisals" includes, but is not limited to, refusal or intentional failure to refer a homebuyer, or encouraging other real estate brokers or real estate agents not to refer a homebuyer, to a mortgage broker or lender based solely on the fact that the mortgage broker or lender uses an appraiser who has provided an appraisal reflecting a fair market value estimate that was less than the sale contract price.

(b) The Commissioner of Consumer Protection may, upon a verified complaint in writing of any person, if such complaint, or such complaint together with evidence, documentary or otherwise, presented in connection with such complaint, make out a prima facie case, of a violation of the provisions of subsection (a) of this section, investigate the actions of a real estate broker or real estate sales person. If a real estate broker or real estate sales person violates the provisions of subsection (a) of this section, the commissioner may temporarily suspend or permanently revoke a license issued under the provisions of chapter 392 of the general statutes after notice and hearing in accordance with chapters 392 and 54 of the general statutes. In addition to or in lieu of such suspension or revocation, the commissioner may impose a civil penalty of not more than one thousand dollars for each offense for any violation of the provisions of subsection (a) of this section.

Sec. 16. (NEW) (Effective July 1, 2008) Not later than January 1, 2009, the Banking Commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, establishing an on-line continuing education program for entities in the mortgage lending business that are required to be licensed under chapter 668 of the general statutes or the 2008 supplement to the general statutes. The Department of Banking shall be solely and exclusively responsible for the provision of such courses. The regulations shall set forth the subject matter and hours of the courses required of such licensees, provided the continuing education program shall not require any licensee to complete more than eight hours of course study over the course of one calendar year, or twelve hours of course study over the course of two calendar years. The licensees shall bear the costs associated with their completion of the on-line continuing education requirement imposed by this section and by the regulations adopted under this section.

Sec. 17. (NEW) (Effective July 1, 2008) Any holder of a mortgage of a residential property inhabited by tenants shall notify the tenants no later than sixty days after the commencement of any foreclosure action instituted against the mortgage holder. A tenant may terminate the tenant's lease without penalty after receipt of the notice required by this section and up to a period of thirty days after receipt of the notice.

Sec. 18. (Effective July 1, 2008) (a) The Banking Commissioner shall enforce the provisions of sections 9 to 14, inclusive, 16 and 17 of this act, and shall have the following powers and duties for such purposes:

(1) The commissioner may adopt regulations, in accordance with chapter 54 of the general statutes, necessary to carry out sections 9 to 14, inclusive, 16 and 17 of this act, and prohibit acts, practices or terms in connection with: (A) Mortgages that the commissioner finds are unfair, deceptive or designed to evade the provisions of sections 9 to 14, inclusive, of this act; and (B) mortgages that the commissioner finds are associated with abusive, unfair or deceptive lending practices or that are otherwise not in the interest of the borrowing public.

(2) The commissioner shall conduct examinations and investigations and issue subpoenas and orders to enforce the provisions of sections 9 to 14, inclusive, 16 and 17 of this act with respect to lenders or brokers.

(3) The commissioner may examine any instrument, document, account, book, record, or file of a lender or mortgage broker under sections 9 to 14, inclusive, 16 and 17 of this act. The commissioner shall recover the cost of examinations from the person. A person making or brokering mortgage loans shall maintain its records in a manner that will facilitate the commissioner in determining whether the person is complying with sections 9 to 14, inclusive, 16 and 17 of this act and the regulations adopted under this section. The commissioner shall require the submission of reports by lenders or mortgage brokers that include such information as the commissioner requires in regulation.

(4) In the event that a person fails to comply with a subpoena for documents or testimony issued by the commissioner, the commissioner may request an order from a court of competent jurisdiction requiring the person to produce the requested information.

(5) If the commissioner determines that a person has violated a provision of sections 9 to 14, inclusive, or section 16 or 17 of this act, the commissioner may do any combination of the following that the commissioner deems appropriate: (A) Take action against such person in accordance with section 36a-50 of the general statutes. No action taken by the commissioner against a creditor in accordance with section 36a-50 of the general statutes shall otherwise relieve the creditor from civil liability; (B) suspend, revoke or refuse to renew any license issued by the department in accordance with section 36a-51 of the 2008 supplement to the general statutes; (C) prohibit or permanently remove an individual responsible for a violation of sections 9 to 14, inclusive, or section 16 or 17 of this act from working in his present capacity or in any other capacity related to activities regulated by the department; (D) order a person to cease and desist any violation of sections 9 to 14, inclusive, or section 16 or 17 of this act in accordance with section 36a-52 of the 2008 supplement to the general statutes and to make restitution and other appropriate relief, including loan modification or forgiveness, to borrowers; or (E) impose such other conditions as the commissioner deems appropriate.

(b) Nothing contained in this section shall be construed as a limitation upon the power or authority of the state, the Attorney General or the commissioner to seek administrative, legal or equitable relief pursuant to any provision of the general statutes or at common law.

(c) The remedies provided in this section are cumulative and do not restrict any other right or remedy otherwise available to the borrower.

Sec. 19. (NEW) (Effective July 1, 2008) The workforce development boards shall establish a Mortgage Crisis Job Training Team in conjunction with CTWorks One Stop Career Centers to provide rapid, customized employment services, job retraining and placement assistance for those unemployed, underemployed or in need of a second job. The Mortgage Crisis Job Training Team shall also provide financial literacy and credit repair training.

Sec. 20. Subsection (a) of section 36a-492 of the 2008 supplement to the general statutes, as amended by section 10 of public act 07-156, is repealed and the following is substituted in lieu thereof (Effective September 30, 2008):

(a) No mortgage lender or first mortgage broker license, and no renewal thereof, shall be granted unless the applicant has filed a bond with the commissioner written by a surety authorized to write such bonds in this state, in the sum of forty thousand dollars, the form of which shall be approved by the Attorney General, provided effective January 1, 2009, the bond shall be in the amount of sixty thousand dollars. Such bond shall be conditioned upon such licensee faithfully performing any and all written agreements or commitments with or for the benefit of borrowers and prospective borrowers, truly and faithfully accounting for all funds received from a borrower or prospective borrower by the licensee in the licensee's capacity as a mortgage lender or a first mortgage broker, and conducting such mortgage business consistent with the provisions of sections 36a-485 to 36a-498a, inclusive. Any borrower or prospective borrower who may be damaged by failure to perform any written agreements or commitments, or by the wrongful conversion of funds paid by a borrower or prospective borrower to a licensee, may proceed on such bond against the principal or surety thereon, or both, to recover damages. The commissioner may proceed on such bond against the principal or surety thereon, or both, to collect any civil penalty imposed upon the licensee pursuant to subsection (a) of section 36a-50. The proceeds of the bond, even if commingled with other assets of the licensee, shall be deemed by operation of law to be held in trust for the benefit of such claimants against the licensee in the event of bankruptcy of the licensee and shall be immune from attachment by creditors and judgment creditors. The bond shall run concurrently with the period of the license granted to the applicant, and the aggregate liability under the bond shall not exceed the penal sum of the bond.

Sec. 21. Section 36a-3 of the 2008 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2008):

Other definitions applying to this title or to specified parts thereof and the sections in which they appear are:

T1

    "Account". Sections 36a-155 and 36a-365.

T2

    "Additional proceeds". Section 36a-746e.

T3

    "Administrative expense". Section 36a-237.

T4

    "Advance fee". Sections 36a-485 of the 2008 supplement to

T5

    the general statutes, 36a-510 of the 2008 supplement to

T6

    the general statutes and 36a-615.

T7

    "Advertise" or "advertisement". Sections 36a-485 of the

T8

    2008 supplement to the general statutes and 36a-510 of

T9

    the 2008 supplement to the general statutes.

T10

    "Agency bank". Section 36a-285.

T11

    "Alternative mortgage loan". Section 36a-265.

T12

    "Amount financed". Section 36a-690.

T13

    "Annual percentage rate". Section 36a-690.

T14

    "Annual percentage yield". Section 36a-316.

T15

    "Annuities". Section 36a-455a.

T16

    "Applicant". Section 36a-736.

T17

    "APR". Section 36a-746a.

T18

    "Assessment area". Section 36a-37.

T19

    "Assets". Section 36a-70.

T20

    "Associate". Section 36a-184.

T21

    "Associated member". Section 36a-458a.

T22

    "Authority". Section 1 of this act.

T23

    "Bank". Section 36a-30.

T24

    "Bankers' bank". Section 36a-70.

T25

    "Banking business". Section 36a-425.

T26

    "Basic services". Section 36a-437a.

T27

    "Billing cycle". Section 36a-565.

T28

    "Bona fide nonprofit organization". Section 36a-655.

T29

    "Branch". Sections 36a-145 of the 2008 supplement to the

T30

    general statutes, 36a-410 of the 2008 supplement to the

T31

    general statutes and 36a-435b.

T32

    "Branch or agency net payment entitlement". Section 36a-428n.

T33

    "Branch or agency net payment obligation". Section 36a-428n.

T34

    "Broker". Section 36a-746a.

T35

    "Business and industrial development corporation". Section 36a-626.

T36

    "Business and property in this state". Section 36a-428n.

T37

    "Capital". Section 36a-435b.

T38

    "Cash advance". Section 36a-564.

T39

    "Cash price". Section 36a-770.

T40

    "Certificate of incorporation". Section 36a-435b.

T41

    "Closely related activities". Sections 36a-250 and 36a-455a.

T42

    "Collective managing agency account". Section 36a-365.

T43

    "Commercial vehicle". Section 36a-770.

T44

    "Community bank". Section 36a-70.

T45

    "Community credit union". Section 36a-37.

T46

    "Community development bank". Section 36a-70.

T47

    "Community reinvestment performance". Section 36a-37.

T48

    "Connecticut holding company". Sections 36a-53 of the

T49

    2008 supplement to the general statutes and 36a-410 of

T50

    the 2008 supplement to the general statutes.

T51

    "Consolidate". Section 36a-145 of the 2008 supplement to

T52

    the general statutes.

T53

    "Construction loan". Section 36a-458a.

T54

    "Consumer". Sections 36a-155, 36a-676 and 36a-695.

T55

    "Consumer Credit Protection Act". Section 36a-676.

T56

    "Consumer debtor" and "debtor". Sections 36a-645 and

T57

    36a-800 of the 2008 supplement to the general statutes.

T58

    "Consumer collection agency". Section 36a-800 of the 2008

T59

    supplement to the general statutes.

T60

    "Consummation". Section 36a-746a.

T61

    "Controlling interest". Section 36a-276.

T62

    "Corporate". Section 36a-435b.

T63

    "Credit". Sections 36a-645 and 36a-676.

T64

    "Credit manager". Section 36a-435b.

T65

    "Creditor". Sections 36a-676, 36a-695 and 36a-800 of the

T66

    2008 supplement to the general statutes.

T67

    "Credit card", "cardholder" and "card issuer". Section 36a-676.

T68

    "Credit clinic". Section 36a-700.

T69

    "Credit rating agency". Section 36a-695.

T70

    "Credit report". Section 36a-695.

T71

    "Credit sale". Section 36a-676.

T72

    "Credit union service organization". Section 36a-435b.

T73

    "Credit union service organization services". Section 36a-435b.

T74

    "De novo branch". Section 36a-410 of the 2008 supplement

T75

    to the general statutes.

T76

    "Debt". Section 36a-645.

T77

    "Debt adjustment". Section 36a-655.

T78

    "Debt mutual fund". Sections 36a-275 and 36a-459a.

T79

    "Debt securities". Sections 36a-275 and 36a-459a.

T80

    "Debtor". Section 36a-655.

T81

    "Deliver". Section 36a-316.

T82

    "Deposit". Section 36a-316.

T83

    "Deposit account". Section 36a-316.

T84

    "Deposit account charge". Section 36a-316.

T85

    "Deposit account disclosures". Section 36a-316.

T86

    "Deposit contract". Section 36a-316.

T87

    "Deposit services". Section 36a-425.

T88

    "Depositor". Section 36a-316.

T89

    "Director". Section 36a-435b.

T90

    "Earning period". Section 36a-316.

T91

    "Electronic payment instrument". Section 36a-596 of the

T92

    2008 supplement to the general statutes.

T93

    "Eligible collateral". Section 36a-330.

T94

    "EMAP" or "Emergency Mortgage Assistance Program". Section 1 of

T95

    this act.

T96

    "Equity mutual fund". Sections 36a-276 and 36a-459a.

T97

    "Equity security". Sections 36a-276 and 36a-459a.

T98

    "Executive officer". Sections 36a-263 and 36a-469c.

T99

    "Federal Credit Union Act". Section 36a-435b.

T100

    "Federal Home Mortgage Disclosure Act". Section 36a-736.

T101

    "Fiduciary". Section 36a-365.

T102

    "Filing fee". Section 36a-770.

T103

    "Finance charge". Sections 36a-690 and 36a-770.

T104

    "Financial institution". Sections 36a-41, 36a-44a, 36a-155, 36a-316,

T105

    36a-330, 36a-435b and 36a-736.

T106

    "Financial records". Section 36a-41.

T107

    "First mortgage broker". Section 36a-485 of the 2008

T108

    supplement to the general statutes.

T109

    "First mortgage correspondent lender". Section 36a-485 of

T110

    the 2008 supplement to the general statutes.

T111

    "First mortgage lender". Section 36a-485 of the 2008

T112

    supplement to the general statutes.

T113

    "First mortgage loan". Sections 36a-485 of the 2008

T114

    supplement to the general statutes, 36a-705, [and] 36a-715, and

T115

    section 9 of this act.

T116

    "Foreign banking corporation". Section 36a-425.

T117

    "General facility". Section 36a-580.

T118

    "Global net payment entitlement". Section 36a-428n.

T119

    "Global net payment obligation". Section 36a-428n.

T120

    "Goods". Sections 36a-535 and 36a-770.

T121

    "Graduated payment mortgage loan". Section 36a-265.

T122

    "Guardian". Section 36a-365.

T123

    "HERO program" or "Homeowner's Equity Recovery Opportunity

T124

    Loan program". Section 1 of this act.

T125

    "High cost home loan". Section 36a-746a.

T126

    "Holder". Section 36a-596 of the 2008 supplement to the

T127

    general statutes.

T128

    "Home banking services". Section 36a-170.

T129

    "Home banking terminal". Section 36a-170.

T130

    "Home improvement loan". Section 36a-736.

T131

    "Home purchase loan". Section 36a-736.

T132

    "Home state". Section 36a-410 of the 2008 supplement to

T133

    the general statutes.

T134

    "Immediate family member". Section 36a-435b.

T135

    "Insider". Section 36a-454b.

T136

    "Installment loan contract". Sections 36a-535 and 36a-770.

T137

    "Insurance". Section 36a-455a.

T138

    "Insurance bank". Section 36a-285.

T139

    "Insurance department". Section 36a-285.

T140

    "Interest". Section 36a-316.

T141

    "Interest rate". Section 36a-316.

T142

    "Lender". Sections 36a-746a and 36a-770, and sections 9 and 10 of

T143

    this act.

T144

    "Lessor". Section 36a-676.

T145

    "License". Section 36a-626.

T146

    "Licensee". Sections 36a-510 of the 2008 supplement to the

T147

    general statutes, 36a-596 of the 2008 supplement to the

T148

    general statutes and 36a-626.

T149

    "Limited branch". Section 36a-145 of the 2008 supplement

T150

    to the general statutes.

T151

    "Limited facility". Section 36a-580.

T152

    "Loan broker". Section 36a-615.

T153

    "Loss". Section 36a-330.

T154

    "Made in this state". Section 36a-770.

T155

    "Managing agent". Section 36a-365.

T156

    "Manufactured home". Section 36a-457b.

T157

    "Material litigation". Section 36a-596 of the 2008

T158

    supplement to the general statutes.

T159

    "Member". Section 36a-435b.

T160

    "Member business loan". Section 36a-458a.

T161

    "Member in good standing". Section 36a-435b.

T162

    "Membership share". Section 36a-435b.

T163

    "Mobile branch". Section 36a-435b.

T164

    "Money order". Section 36a-596 of the 2008 supplement to

T165

    the general statutes.

T166

    "Money transmission". Section 36a-365.

T167

    "Mortgage broker". Sections 9 and 10 of this act.

T168

    "Mortgage insurance". Section 36a-725.

T169

    "Mortgage lender". Sections 36a-485 of the 2008

T170

    supplement to the general statutes, 36a-510 of the 2008

T171

    supplement to the general statutes and 36a-705.

T172

    "Mortgage". Sections 1 and 10 of this act.

T173

    "Mortgagee". Section 1 of this act.

T174

    "Mortgage loan". Sections 36a-261, 36a-265 and 36a-457b.

T175

    "Mortgage assistance program committee". Section 1 of this act.

T176

    "Mortgage rate lock-in". Section 36a-705.

T177

    "Mortgage servicing company". Section 36a-715.

T178

    "Mortgagor". Section 36a-715 and section 1 of this act.

T179

    "Motor vehicle". Section 36a-770.

T180

    "Multiple common bond membership". Section 36a-435b.

T181

    "Municipality". Section 36a-800 of the 2008 supplement to

T182

    the general statutes.

T183

    "Net outstanding member business loan balance". Section 36a-458a.

T184

    "Net worth". Sections 36a-441a, 36a-458a and 36a-596 of

T185

    the 2008 supplement to the general statutes.

T186

    "Network". Section 36a-155.

T187

    "Nonprime home loan". Section 9 of this act.

T188

    "Nonrefundable". Sections 36a-498 of the 2008

T189

    supplement to the general statutes and 36a-521 of

T190

    the 2008 supplement to the general statutes.

T191

    "Note account". Sections 36a-301 and 36a-456b.

T192

    "Office". Section 36a-316.

T193

    "Officer". Section 36a-435b.

T194

    "Open-end credit plan". Section 36a-676.

T195

    "Open-end loan". Section 36a-565.

T196

    "Organization". Section 36a-800 of the 2008 supplement to

T197

    the general statutes.

T198

    "Originator". Sections 36a-485 of the 2008 supplement to

T199

    the general statutes and 36a-510 of the 2008 supplement

T200

    to the general statutes.

T201

    "Out-of-state holding company". Section 36a-410 of the

T202

    2008 supplement to the general statutes.

T203

    "Outstanding". Section 36a-596 of the 2008 supplement to

T204

    the general statutes.

T205

    "Passbook savings account". Section 36a-316.

T206

    "Payment instrument". Section 36a-596 of the 2008

T207

    supplement to the general statutes.

T208

    "Periodic statement". Section 36a-316.

T209

    "Permissible investment". Section 36a-596 of the 2008

T210

    supplement to the general statutes.

T211

    "Person". Section 36a-184.

T212

    "Post". Section 36a-316.

T213

    "Prepaid finance charge". Section 36a-746a.

T214

    "Prepayment penalty". Section 36a-746a.

T215

    "Prime quality". Section 36a-596 of the 2008 supplement

T216

    to the general statutes.

T217

    "Principal amount of the loan". Section 36a-510 of the

T218

    2008 supplement to the general statutes.

T219

    "Processor". Section 36a-155.

T220

    "Public deposit". Section 36a-330.

T221

    "Purchaser". Section 36a-596 of the 2008 supplement to

T222

    the general statutes.

T223

    "Qualified financial contract". Section 36a-428n.

T224

    "Qualified public depository" and "depository". Section 36a-330.

T225

    "Real estate". Section 36a-457b.

T226

    "REAL program" or "REfinance to an Affordable Loan program".

T227

    Section 1 of this act.

T228

    "Records". Section 36a-17.

T229

    "Related person". Section 36a-53 of the 2008 supplement

T230

    to the general statutes.

T231

    "Relocate". Sections 36a-145 of the 2008 supplement to the

T232

    general statutes and 36a-462a.

T233

    "Residential property". Section 36a-485 of the 2008

T234

    supplement to the general statutes and section 9 of this act.

T235

    "Retail buyer". Sections 36a-535 and 36a-770.

T236

    "Retail credit transaction". Section 42-100b.

T237

    "Retail installment contract". Sections 36a-535 and 36a-770.

T238

    "Retail installment sale". Sections 36a-535 and 36a-770.

T239

    "Retail seller". Sections 36a-535 and 36a-770.

T240

    "Reverse annuity mortgage loan". Section 36a-265.

T241

    "Sales finance company". Sections 36a-535 and 36a-770.

T242

    "Savings department". Section 36a-285.

T243

    "Savings deposit". Section 36a-316.

T244

    "Secondary mortgage broker". Section 36a-510 of the 2008

T245

    supplement to the general statutes.

T246

    "Secondary mortgage correspondent lender". Section 36a-

T247

    510 of the 2008 supplement to the general statutes.

T248

    "Secondary mortgage lender". Section 36a-510 of the 2008

T249

    supplement to the general statutes.

T250

    "Secondary mortgage loan". Section 36a-510 of the 2008

T251

    supplement to the general statutes and section 9 of this act.

T252

    "Security convertible into a voting security". Section 36a-184.

T253

    "Senior management". Section 36a-435b.

T254

    "Share". Section 36a-435b.

T255

    "Simulated check". Sections 36a-485 of the 2008

T256

    supplement to the general statutes and 36a-510 of the

T257

    2008 supplement to the general statutes.

T258

    "Single common bond membership". Section 36a-435b.

T259

    "Social purpose investment". Section 36a-277.

T260

    "Standard mortgage loan". Section 36a-265.

T261

    "Table funding agreement". Section 36a-485 of the 2008

T262

    supplement to the general statutes.

T263

    "Tangible benefit to the borrower". Section 11 of this act.

T264

    "Tax and loan account". Sections 36a-301 and 36a-456b.

T265

    "The Savings Bank Life Insurance Company". Section 36a-285.

T266

    "Time account". Section 36a-316.

T267

    "Travelers check". Section 36a-596 of the 2008 supplement

T268

    to the general statutes.

T269

    "Troubled Connecticut credit union". Section 36a-448a.

T270

    "Unsecured loan". Section 36a-615.

T271

    "Warehouse agreement". Section 36a-485 of the 2008

T272

    supplement to the general statutes.

T273

    "Yield spread premium". Section 13 of this act.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2008

New section

Sec. 2

July 1, 2008

New section

Sec. 3

July 1, 2008

New section

Sec. 4

July 1, 2008

New section

Sec. 5

July 1, 2008

New section

Sec. 6

July 1, 2008

New section

Sec. 7

July 1, 2008

New section

Sec. 8

July 1, 2008

New section

Sec. 9

July 1, 2008

New section

Sec. 10

July 1, 2008

New section

Sec. 11

July 1, 2008

New section

Sec. 12

July 1, 2008

New section

Sec. 13

July 1, 2008

New section

Sec. 14

July 1, 2008

New section

Sec. 15

July 1, 2008

New section

Sec. 16

July 1, 2008

New section

Sec. 17

July 1, 2008

New section

Sec. 18

July 1, 2008

New section

Sec. 19

July 1, 2008

New section

Sec. 20

September 30, 2008

36a-492(a)

Sec. 21

July 1, 2008

36a-3

BA

Joint Favorable Subst.

 

JUD

Joint Favorable

 

FIN

Joint Favorable