JOINT FAVORABLE REPORT
AN ACT CONCERNING THE DEPARTMENT OF BANKING'S PROPOSAL TO IMPLEMENT THE S.A.F.E. MORTGAGE LICENSING ACT.
Joint Favorable Substitute LCO: #4774
SPONSORS OF BILL:
Department of Banking
REASONS FOR BILL:
This bill allows the Comissioner of the Department of Banking to implement the provisions of the federal S.A.F.E. Mortgage Licensing Act of 2008. (Please note that some testimony was offered in support of HB6368 and also applies to provisions of this bill.)
RESPONSE FROM ADMINISTRATION/AGENCY:
Alan Cicchetti for Commissioner Howard Pitkin, Department of Banking
We support this bill because it is necessary to allow Connecticut to implement SAFE by July 1, 2009. If Connecticut does not implement SAFE by that date, the Department of Housing and Urban Development could take over regulation of mortgage loan originators in Connecticut. This would dramatically limit the oversight the Department of Banking would have over these individuals.
Deborah J. Fuller, Judicial Branch
The Judicial Branch has some technical concerns with this proposal. Section 21 is inconsistent with existing statutes that govern erasure of criminal records and prohibit the disclosure of non-conviction information. We suggest amending these sections.
Timothy F. Bannon, Connecticut Housing Finance Authority
This proposal is necessary because if S.A.F.E. is not implemented within a year of its effective date, the Department of Housing and Urban Development can take over regulation of mortgage loan originators in Connecticut.
NATURE AND SOURCES OF SUPPORT:
Connecticut Mortgage Bankers Association, Inc.
The CMBA generally supports the SAFE bill so that the Connecticut Department of Banking can continue to be the licensing authority for mortgage loan originators in the State of Connecticut. The CMBA proposes some modifications to the SAFE bill that would conform its provisions to the federal HERA Act of 2008.
Ann Parrent, CT Fair Housing Center
We support this bill with one recommended improvement, establishing that property insurance would not exceed the value of the lien.
NATURE AND SOURCES OF OPPOSITION:
Reported by: Elaine Dall
Date: March 12, 2009