Banking Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-906

Title:

AN ACT CONCERNING LEAD GENERATORS OF RESIDENTIAL MORTGAGE LOANS.

Vote Date:

3/7/2017

Vote Action:

Joint Favorable Substitute

PH Date:

3/2/2017

File No.:

SPONSORS OF BILL:

Banking Committee.

REASONS FOR BILL:

This bill creates a new license category for “lead generators”—individuals who sell information identifying new customers for residential mortgage loans, and authorizes the Banking Commissioner to have regulatory authority over these individuals.

SUBSTITUTE LANGUAGE:

The substitute language makes various technical changes to the underlying bill.

RESPONSE FROM ADMINISTRATION/AGENCY:

Matt Smith, Director, Department of Banking

The Department defined a lead generator as “a person who engages in the business of generating or selling consumer leads”. Under current law, lead generators are regulated under mortgage broker licenses, but “the record retention requirement cannot be met with just lead generation”. This would also cover individuals who perform marketing services related to residential mortgage loans. This bill will help consumers by ensuring good business practices.

NATURE AND SOURCES OF SUPPORT:

Jeff Gentes, Connecticut Fair Housing Center

The bill would allow the Department of Banking to regulate lead generators, and the Connecticut Fair Housing Center supports the Department's efforts to supervise lead generators.

NATURE AND SOURCES OF OPPOSITION:

None submitted (in response to SB 906).

Reported by: Sara LeMaster

Date: 03/26/2017