OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5353

AN ACT CONCERNING MORTGAGE SERVICERS, CONNECTICUT FINANCIAL INSTITUTIONS, CONSUMER CREDIT LICENSES, THE FORECLOSURE MEDIATION PROGRAM AND MINOR REVISIONS TO THE BANKING STATUTES.

As Amended by House "A" (LCO 4518)

House Calendar No.: 237


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Banking Dept.

BF - Revenue Gain

up to 50,000

See Explanation

Judicial Dept.

BF - Cost

5.9 million

6.3 million

Various Agencies

GF,BF – Potential Cost

Less than 1,000

Less than 1,000

Municipal Impact: None

Explanation

The bill results in a revenue gain of up to $50,000 in FY 15 to the Banking Fund by expanding the scope of services subject to licensure to include mortgage servicers. It is anticipated that up to 50 mortgage servicers may be licensed as a result of the bill. The fee ($1,000) is paid biennially and it is possible some of the anticipated revenue could occur in FY 16 rather than FY 15.

The bill results in a cost of approximately $5.9 million in FY 15 and $6.3 million in FY 16 to the Banking Fund by extending the foreclosure mediation program in the Judicial Department. This includes 50 positions and programmatic funding. The program is currently scheduled to end in FY 14. PA 13-184, the FY 14 and FY 15 Budget, includes a $5.9 million Banking Fund appropriation for the foreclosure mediation program.

There may be Banking and General Fund costs of less than $1,000 in FY 15 to those agencies participating in the Commission of Connecticut's Leadership in Corporation and Business Law and the task force to study reverse mortgage transactions established by the bill to reimburse legislators and agency staff for mileage. There may also be similar costs of less than $1,000 associated with the Commission in FY 16.

The bill makes other changes that do not result in a fiscal impact to the Department of Banking.

House Amendment “A” ends the Judicial Department Foreclosure Mediation Program after FY 16 and eliminates the FY 17 and FY 18 Banking Fund cost to the Judicial Department, $6.7 million and $7.2 million respectively, in the underlying bill. It also establishes the Commission of Connecticut's Leadership in Corporation and Business Law and the task force to study reverse mortgage transactions whose fiscal impact is described above. Finally, the amendment makes additional technical and clarifying changes that have no fiscal impact.

The Out Years

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

FY 19 $

Banking Dept.

BF - Revenue Gain

up to 50,000

See Explanation

up to 50,000

Municipal Impact: None