Connecticut House Bill HB05352

Connecticut 2011 Regular Session

• Introduced: 1/19/11
• Refer: 1/19/11

Caption

An Act Prohibiting The Assessment Of Title Insurance Fees Upon The Refinancing A Mortgage Loan.

Impact

The proposed legislation will directly impact the costs associated with refinancing mortgage loans. Homeowners will benefit from reduced closing costs, as they will only incur title insurance fees one time, at the original mortgage loan's inception. This could incentivize more homeowners to refinance their mortgages, potentially increasing overall financial stability for many individuals and families. Furthermore, the change may promote a more accessible refinancing market, encouraging banks and lenders to offer competitive refinancing terms without the burden of additional fees.

Summary

House Bill 05352 aims to prohibit the assessment of title insurance fees upon the refinancing of mortgage loans. The bill proposes an amendment to Title 36a of the general statutes, which currently allows lenders to charge title insurance fees each time a mortgage loan is refinanced. By eliminating this requirement, the bill seeks to reduce the financial burden on homeowners who are refinancing their properties. This change is particularly relevant in a fluctuating housing market where refinancing can be a cost-effective option for many homeowners looking to lower their mortgage payments or access equity in their properties.

Contention

While the bill aims to alleviate costs for homeowners, there may be concerns from title insurance companies and financial institutions about the potential loss of revenue. Opponents of the bill may argue that the removal of these fees could lead to increased risk for lenders. Additionally, financial institutions may contend that the title insurance protects them against claims that could emerge after a loan is written. The discussions surrounding HB 05352 may highlight a tension between the interests of consumers seeking financial relief and the concerns of lenders regarding necessary protections.

Notable_points

Notably, HB 05352 received backing from various consumer advocacy groups, which argue that reducing title insurance fees aligns with efforts to make housing more affordable. Legislative debates may also focus on the implications for title insurance companies and how the removal of these fees could reshape the competitive landscape in mortgage lending. As discussions progress, the bill's sponsors and advocates will need to address these concerns to build a coalition of support for its passage.