Connecticut Seal

General Assembly

Amendment

 

January Session, 2015

LCO No. 6323

   
 

*SB0092406323SDO*

Offered by:

 

SEN. WINFIELD, 10th Dist.

REP. LESSER, 100th Dist.

 

To: Subst. Senate Bill No. 924

File No. 143

Cal. No. 147

"AN ACT CONCERNING REVISIONS TO VARIOUS CONNECTICUT BANKING STATUTES. "

Change the effective date of sections 1 to 23, inclusive, to "Effective August 1, 2015"

In line 69, after "person" insert ", including the delivery of integrated disclosures required by 12 USC 5301 et seq., and implemented through regulations adopted by the Bureau of Consumer Financial Protection"

In line 73, after "time," insert "or by regulation promulgated pursuant to 15 USC 1604, as amended from time to time,"

In line T123, before ""Home" insert an opening bracket, strike ", as amended by this act" and after the second period insert a closing bracket

In line T124, before ""Home" insert an opening bracket, strike ", as amended by this act" and after the second period insert a closing bracket

After line T249, insert ""Virtual Banking". Section 36a-170, as amended by this act."

In line 1179, strike "[(c)] (b)" and insert "[(c)" in lieu thereof

In line 1179, before "by" strike the opening bracket

In line 1180, strike the closing bracket and "initiated through"

In line 1181, strike "virtual banking"

In line 1183, insert a closing bracket after "time. "

After line 1183, insert the following:

"(b) Any bank, out-of-state bank, Connecticut credit union or federal credit union may engage in virtual banking. Any such bank or credit union shall comply with the Electronic Fund Transfer Act, 15 USC Section 1693, et seq., as amended from time to time, and Regulation E, 12 CFR Part 1005, as amended from time to time, when processing transactions through virtual banking to the extent such transactions are subject to said act and said regulation."

In line 1188, strike "telephone" and insert in lieu thereof "mobile telephone device"

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Section 36a-493 of the general statutes is repealed and the following is substituted in lieu thereof (Effective August 1, 2015):

(a) Each mortgage lender, mortgage correspondent lender and mortgage broker licensee shall maintain adequate records of each residential mortgage loan transaction at the office named in the license, or, if requested by the commissioner, shall make such records available at such office or send such records to the commissioner by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt, not later than five business days after requested by the commissioner to do so. Upon request, the commissioner may grant a licensee additional time to make such records available or send them to the commissioner. Such records shall provide the following information: (1) A copy of any disclosures required under part III of chapter 669; (2) whether the licensee acted as a mortgage lender, a mortgage correspondent lender, a mortgage broker, a mortgage lender and a mortgage broker, or a mortgage correspondent lender and a mortgage broker; (3) if the licensee is acting as a mortgage lender or mortgage correspondent lender, and retains the residential mortgage loan or receives payments thereon, an adequate loan history for those loans retained or upon which payments are received, itemizing the amount and date of each payment and the unpaid balance at all times; (4) the purpose for which the loan was made; (5) the original or an exact copy of the note, loan agreement or other evidence of indebtedness and mortgage deed; (6) a statement signed by the borrower acknowledging the receipt of such statement which discloses the full amount of any fee, commission or consideration paid to the mortgage lender, mortgage correspondent lender and mortgage broker for all services in connection with the origination and settlement of the residential mortgage loan; (7) the name and address of the mortgage lender, mortgage correspondent lender and the mortgage broker, if any, involved in the loan transaction; (8) a copy of the initial and a copy of the final residential mortgage loan application taken from the borrower; and (9) a copy of all information used in evaluating the application.

(b) For each loan that is made and serviced by a licensee, the licensee shall retain: (1) The records of such loan transaction for not less than two years following the final payment thereon, or the assignment of such loan, whichever occurs first, or such longer period as may be required by any other provision of law, and (2) copies of the note, [HUD-1 settlement statement] closing disclosure or other settlement statement, or such other records as are sufficient to verify the mortgage lender's or mortgage correspondent lender's compliance with section 36a-498a for not less than five years from the date of the transaction.

(c) For each loan transaction in which a licensee acts as a mortgage lender, mortgage correspondent lender or mortgage broker but does not service the loan, the licensee shall retain: (1) The records of such loan transaction for not less than two years from the date of the transaction or such longer period as may be required by any other provision of law, and (2) copies of the note, [HUD-1 settlement statement] closing disclosure or other settlement statement, or such other records as are sufficient to verify the mortgage lender's or mortgage correspondent lender's compliance with section 36a-498a for not less than five years from the date of the transaction.

(d) Any person who furnishes to a licensee any records required to be maintained under this section or any information necessary to complete such records may charge a fee to the licensee in an amount not to exceed fifty dollars.

Sec. 502. Subsection (a) of section 36a-494 of the general statutes is repealed and the following is substituted in lieu thereof (Effective August 1, 2015):

(a) (1) The commissioner may suspend, revoke or refuse to renew any mortgage lender, mortgage correspondent lender or mortgage broker license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, or if the commissioner finds that the licensee, any control person of the licensee, the qualified individual or branch manager with supervisory authority, trustee, employee or agent of such licensee has done any of the following: (A) Made any material misstatement in the application; (B) committed any fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction, including disclosures required by subdivision (6) of subsection (a) of section 36a-493, or part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such information; (C) violated any of the provisions of this title or of any regulations adopted pursuant thereto, or any other law or regulation applicable to the conduct of its business; or (D) failed to perform any agreement with a licensee or a borrower. For purposes of this subdivision, "agent" includes any settlement agent used by the licensee and "settlement agent" means the person specified in any [HUD-1 settlement statement] closing disclosure or other settlement statement, provided such settlement agent has been selected by the licensee. Any settlement agent whose name appears on the licensee's list of approved settlement agents shall be deemed selected by the licensee even if the settlement agent is selected from such list by the borrower.

(2) The commissioner may suspend, revoke or refuse to renew any mortgage loan originator license or any loan processor or underwriter license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, or if the commissioner finds that the licensee has committed any fraud, misappropriated funds, misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction or has violated any of the provisions of this title or of any regulations adopted pursuant to such title or any other law or regulation applicable to the conduct of such licensee's business.

Sec. 503. Subdivision (3) of section 36a-615 of the general statutes is repealed and the following is substituted in lieu thereof (Effective August 1, 2015):

(3) "Unsecured loan" means any loan of money or extension of credit that is not secured by a security interest, as defined in Regulation Z, 12 CFR Section [226. 2(a)(25)] 1026.2(a)(25), as from time to time amended.

Sec. 504. Subdivision (3) of subsection (a) of section 36a-726 of the general statutes is repealed and the following is substituted in lieu thereof (Effective August 1, 2015):

(3) A good faith estimate of the initial cost, if any, and the monthly cost, if any, of the required mortgage insurance. Notwithstanding the foregoing, if the first mortgage loan transaction is subject to the requirements of the federal Real Estate Settlement Procedures Act, the mortgage lender may, in place of the disclosure required under this subdivision, disclose that the cost of mortgage insurance will be disclosed on the good faith estimate of closing costs required to be furnished to the applicant in accordance with the Real Estate Settlement Procedures Act and the Truth-in-Lending Act, 15 USC Section 1601 et seq., as amended from time to time, and the regulations promulgated thereunder.

Sec. 505. Subdivision (3) of subsection (b) of section 42-480 of the general statutes is repealed and the following is substituted in lieu thereof (Effective August 1, 2015):

(3) The annual percentage rate utilizing the guidelines established by the official staff interpretations of federal Regulation Z to the Truth in Lending Act, 12 CFR Part [226] 1026;

Sec. 506. Subsection (b) of section 36a-155 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) The commissioner may adopt such regulations in accordance with the provisions of chapter 54 as may be necessary to carry out the purpose of sections 36a-155 to 36a-159, inclusive, and section 36a-170, as amended by this act. Such regulations may include, but shall not be limited to: (1) Requirements for the filing of information with the commissioner by any financial institution, network or processor in connection with (A) the establishment or use of automated teller machines, point of sale terminals or similar retail electronic banking facilities in this state, (B) the provision of [home] virtual banking services in this state, and (C) the provision of network or processing services in this state; (2) provisions concerning services that may be provided at automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state, [or by means of home banking terminals located in this state,] including services that may be offered on a proprietary basis; and (3) provisions concerning the safety of persons using automated teller machines or similar retail electronic banking facilities. As used in this subsection, "financial institution" means any bank, Connecticut credit union, federal credit union, out-of-state bank or out-of-state credit union authorized under Connecticut or federal law to accept deposits within this state, or any other person having a place of business in this state who holds an account belonging to a consumer and who agrees with the consumer to provide electronic fund transfer services subject to the provisions of 12 CFR Part 205, as from time to time amended, at automated teller machines, point of sale terminals or similar retail electronic banking facilities in this state; "account" means a demand deposit, savings deposit, share, member or other consumer asset account, held either directly or indirectly, and established primarily for personal, family or household purposes, including a line of credit extended to a consumer, but not including an occasional or incidental credit balance in a credit plan; "consumer" means a natural person residing in this state; "network" means one or more financial institutions or other persons that own and operate one or more network systems or facilities, or provide communications or processing services to one or more automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state; [, or to one or more home banking terminals located in this state; ] and "processor" means one or more persons that provide communications, processing, clearing, settlement or related services to one or more financial institutions in connection with the operation of one or more automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state. [, or one or more home banking terminals located in this state. ]

Sec. 507. Subdivision (23) of subsection (a) of section 36a-250 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(23) Provide [home] virtual banking services to customers as provided in section 36a-170, as amended by this act; "

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

Sec. 501

August 1, 2015

36a-493

Sec. 502

August 1, 2015

36a-494(a)

Sec. 503

August 1, 2015

36a-615(3)

Sec. 504

August 1, 2015

36a-726(a)(3)

Sec. 505

August 1, 2015

42-480(b)(3)

Sec. 506

from passage

36a-155(b)

Sec. 507

from passage

36a-250(a)(23)