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Connecticut Senate Bill SB00160

Connecticut 2012 Regular Session

Connecticut Senate Bill SB00160 Compare Versions

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11 General Assembly Raised Bill No. 160
22 February Session, 2012 LCO No. 1007
33 *01007_______BA_*
44 Referred to Committee on Banks
55 Introduced by:
66 (BA)
77
88 General Assembly
99
1010 Raised Bill No. 160
1111
1212 February Session, 2012
1313
1414 LCO No. 1007
1515
1616 *01007_______BA_*
1717
1818 Referred to Committee on Banks
1919
2020 Introduced by:
2121
2222 (BA)
2323
2424 AN ACT CONCERNING THE S.A.F.E. MORTGAGE LICENSING ACT.
2525
2626 Be it enacted by the Senate and House of Representatives in General Assembly convened:
2727
2828 Section 1. Section 36a-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
2929
3030 Other definitions applying to this title or to specified parts thereof and the sections in which they appear are:
3131
3232
3333
3434 T1 "Account". Sections 36a-155 and 36a-365.
3535 T2 "Additional proceeds". Section 36a-746e.
3636 T3 "Administrative expense". Section 36a-237.
3737 T4 "Advance fee". Sections 36a-485, as amended by this act, and 36a-615.
3838 T5 "Advertise", [or] "advertisement" or "advertising". Section 36a-485, as
3939 T6 amended by this act.
4040 T7 "Agency bank". Section 36a-285.
4141 T8 "Agent". Section 36a-494, as amended by this act.
4242 T9 "Alternative mortgage loan". Section 36a-265.
4343 T10 "Amount financed". Section 36a-690.
4444 T11 "Annual percentage rate". Section 36a-690.
4545 T12 "Annual percentage yield". Section 36a-316.
4646 T13 "Annuities". Section 36a-455a.
4747 T14 "Applicant". Section 36a-736.
4848 T15 "APR". Section 36a-746a.
4949 T16 "Assessment area". Section 36a-37.
5050 T17 "Assets". Section 36a-70.
5151 T18 "Associate". Section 36a-184.
5252 T19 "Associated member". Section 36a-458a.
5353 T20 "Bank". Section 36a-30.
5454 T21 "Bankers' bank". Section 36a-70.
5555 T22 "Banking business". Section 36a-425.
5656 T23 "Basic services". Section 36a-437a.
5757 T24 "Billing cycle". Section 36a-565.
5858 T25 "Bona fide nonprofit organization". Section 36a-487, as amended by this
5959 T26 act, and section 36a-655.
6060 T27 "Branch". Sections 36a-145, 36a-410 and 36a-435b.
6161 T28 "Branch office". Section 36a-485, as amended by this act.
6262 T29 "Branch or agency net payment entitlement". Section 36a-428n.
6363 T30 "Branch or agency net payment obligation". Section 36a-428n.
6464 T31 "Broker". Section 36a-746a.
6565 T32 "Business and industrial development corporation". Section 36a-626.
6666 T33 "Business and property in this state". Section 36a-428n.
6767 T34 "Capital". Section 36a-435b.
6868 T35 "Cash advance". Section 36a-564.
6969 T36 "Cash price". Section 36a-770.
7070 T37 "Certificate of incorporation". Section 36a-435b.
7171 T38 "CHFA loan". Section 36a-760.
7272 T39 "Clerical or support duties". Section 36a-485, as amended by this act.
7373 T40 "Closely related activities". Sections 36a-250 and 36a-455a.
7474 T41 "Collective managing agency account". Section 36a-365.
7575 T42 "Commercial vehicle". Section 36a-770.
7676 T43 "Community bank". Section 36a-70.
7777 T44 "Community credit union". Section 36a-37.
7878 T45 "Community development bank". Section 36a-70.
7979 T46 "Community reinvestment performance". Section 36a-37.
8080 T47 "Connecticut holding company". Sections 36a-53 and 36a-410.
8181 T48 "Consolidate". Section 36a-145.
8282 T49 "Construction loan". Section 36a-458a.
8383 T50 "Consumer". Sections 36a-155, 36a-676 and 36a-695.
8484 T51 "Consumer Credit Protection Act". Section 36a-676.
8585 T52 "Consumer debtor" and "debtor". Sections 36a-645 and 36a-800.
8686 T53 "Consumer collection agency". Section 36a-800.
8787 T54 "Consummation". Section 36a-746a.
8888 T55 "Control person". Section 36a-485, as amended by this act.
8989 T56 "Controlling interest". Section 36a-276.
9090 T57 "Conventional mortgage rate". Section 36a-760.
9191 T58 "Corporate". Section 36a-435b.
9292 T59 "Credit". Sections 36a-645 and 36a-676.
9393 T60 "Credit manager". Section 36a-435b.
9494 T61 "Creditor". Sections 36a-676, 36a-695 and 36a-800.
9595 T62 "Credit card", "cardholder" and "card issuer". Section 36a-676.
9696 T63 "Credit clinic". Section 36a-700.
9797 T64 "Credit rating agency". Section 36a-695.
9898 T65 "Credit report". Section 36a-695.
9999 T66 "Credit sale". Section 36a-676.
100100 T67 "Credit union service organization". Section 36a-435b.
101101 T68 "Credit union service organization services". Section 36a-435b.
102102 T69 "De novo branch". Section 36a-410.
103103 T70 "Debt". Section 36a-645.
104104 T71 "Debt adjustment". Section 36a-655.
105105 T72 "Debt mutual fund". Sections 36a-275 and 36a-459a.
106106 T73 "Debt securities". Sections 36a-275 and 36a-459a.
107107 T74 "Debtor". Section 36a-655.
108108 T75 "Deliver". Section 36a-316.
109109 T76 "Deposit". Section 36a-316.
110110 T77 "Deposit account". Section 36a-316.
111111 T78 "Deposit account charge". Section 36a-316.
112112 T79 "Deposit account disclosures". Section 36a-316.
113113 T80 "Deposit contract". Section 36a-316.
114114 T81 "Deposit services". Section 36a-425.
115115 T82 "Depositor". Section 36a-316.
116116 T83 "Depository institution". Section 36a-485, as amended by this act.
117117 T84 "Director". Section 36a-435b.
118118 T85 "Dwelling". Section 36a-485, as amended by this act.
119119 T86 "Earning period". Section 36a-316.
120120 T87 "Electronic payment instrument". Section 36a-596.
121121 T88 "Eligible collateral". Section 36a-330.
122122 T89 "Eligible entity". Section 36a-34.
123123 T90 "Employee". Section 36a-485, as amended by this act.
124124 T91 "Equity mutual fund". Sections 36a-276 and 36a-459a.
125125 T92 "Equity security". Sections 36a-276 and 36a-459a.
126126 T93 "Executive officer". Sections 36a-263 and 36a-469c.
127127 T94 "Expedited Connecticut bank". Section 36a-70.
128128 T95 "Experience in the mortgage business". Section 36a-488, as amended by
129129 T96 this act.
130130 T97 "Federal banking agency". Section 36a-485, as amended by this act.
131131 T98 "Federal Credit Union Act". Section 36a-435b.
132132 T99 "Federal Home Mortgage Disclosure Act". Section 36a-736.
133133 T100 "FHA loan". Section 36a-760.
134134 T101 "Fiduciary". Section 36a-365.
135135 T102 "Filing fee". Section 36a-770.
136136 T103 "Finance charge". Sections 36a-690 and 36a-770.
137137 T104 "Financial institution". Sections 36a-41, 36a-44a, 36a-155, 36a-316, 36a-330,
138138 T105 36a-435b, 36a-736 and 36a-755.
139139 T106 "Financial records". Section 36a-41.
140140 T107 "First mortgage loan". Sections 36a-485, as amended by this act, 36a-705,
141141 T108 36a-715 and 36a-725.
142142 T109 "Foreign banking corporation". Section 36a-425.
143143 T110 "Fully indexed rate". Section 36a-760b.
144144 T111 "General facility". Section 36a-580.
145145 T112 "Global net payment entitlement". Section 36a-428n.
146146 T113 "Global net payment obligation". Section 36a-428n.
147147 T114 "Goods". Sections 36a-535 and 36a-770.
148148 T115 "Graduated payment mortgage loan". Section 36a-265.
149149 T116 "Guardian". Section 36a-365.
150150 T117 "High cost home loan". Section 36a-746a.
151151 T118 "Holder". Section 36a-596.
152152 T119 "Home banking services". Section 36a-170.
153153 T120 "Home banking terminal". Section 36a-170.
154154 T121 "Home improvement loan". Section 36a-736.
155155 T122 "Home purchase loan". Section 36a-736.
156156 T123 "Home state". Section 36a-410.
157157 T124 "Housing finance agency". Section 36a-487, as amended by this act.
158158 T125 "Immediate family member". Section 36a-435b and section 36a-485, as
159159 T126 amended by this act.
160160 T127 "Independent contractor". Section 36a-485, as amended by this act.
161161 T128 "Individual". Section 36a-485, as amended by this act.
162162 T129 "Insider". Section 36a-454b.
163163 T130 "Installment loan contract". Sections 36a-535 and 36a-770.
164164 T131 "Insurance". Section 36a-455a.
165165 T132 "Insurance bank". Section 36a-285.
166166 T133 "Insurance department". Section 36a-285.
167167 T134 "Interest". Section 36a-316.
168168 T135 "Interest rate". Section 36a-316.
169169 T136 "Interim interest". Section 36a-746a.
170170 T137 "Lender". Sections 36a-746a, 36a-760 and 36a-770.
171171 T138 "Lessor". Section 36a-676.
172172 T139 "License". Section 36a-626.
173173 T140 "Licensee". Sections 36a-596 and 36a-626.
174174 T141 "Limited branch". Section 36a-145.
175175 T142 "Limited facility". Section 36a-580.
176176 T143 "Loan broker". Section 36a-615.
177177 T144 "Loan processor or underwriter". Section 36a-485, as amended by this act.
178178 T145 "Loss". Section 36a-330.
179179 T146 "Made in this state". Section 36a-770.
180180 T147 "Main office". Section 36a-485, as amended by this act.
181181 T148 "Managing agent". Section 36a-365.
182182 T149 "Manufactured home". Section 36a-457b.
183183 T150 "Material litigation". Section 36a-596.
184184 T151 "Member". Section 36a-435b.
185185 T152 "Member business loan". Section 36a-458a.
186186 T153 "Member in good standing". Section 36a-435b.
187187 T154 "Membership share". Section 36a-435b.
188188 T155 "Mobile branch". Sections 36a-145 and 36a-435b.
189189 T156 "Money order". Section 36a-596.
190190 T157 "Money transmission". Section 36a-365.
191191 T158 "Mortgage". Section 36a-760g.
192192 T159 "Mortgage broker". Sections 36a-485, as amended by this act, 36a-705 and
193193 T160 36a-760.
194194 T161 "Mortgage correspondent lender". Section 36a-485, as amended by this act.
195195 T162 "Mortgage insurance". Section 36a-725.
196196 T163 "Mortgage lender". Sections 36a-485, as amended by this act, 36a-705 and
197197 T164 36a-725.
198198 T165 "Mortgage loan". Sections 36a-261, 36a-265, 36a-457b [, 36a-485] and 36a-
199199 T166 736.
200200 T167 "Mortgage loan originator". Section 36a-485, as amended by this act.
201201 T168 "Mortgage rate lock-in". Section 36a-705.
202202 T169 "Mortgage servicing company". Section 36a-715.
203203 T170 "Mortgagor". Section 36a-715.
204204 T171 "Motor vehicle". Section 36a-770.
205205 T172 "Multiple common bond membership". Section 36a-435b.
206206 T173 "Municipality". Section 36a-800.
207207 T174 "Net outstanding member business loan balance". Section 36a-458a.
208208 T175 "Net worth". Sections 36a-441a, 36a-458a and 36a-596.
209209 T176 "Network". Section 36a-155.
210210 T177 "Nonprime home loan". Section 36a-760.
211211 T178 "Nonrefundable". Section 36a-498.
212212 T179 "Nontraditional mortgage product". Section 36a-489a, as amended by this
213213 T180 act.
214214 T181 "Note account". Sections 36a-301 and 36a-456b.
215215 T182 "Office". Sections 36a-23, 36a-316 and 36a-485, as amended by this act.
216216 T183 "Officer". Section 36a-435b.
217217 T184 "Open-end credit plan". Section 36a-676.
218218 T185 "Open-end line of credit". Section 36a-760.
219219 T186 "Open-end loan". Section 36a-565.
220220 T187 "Organization". Section 36a-800.
221221 T188 "Out-of-state holding company". Section 36a-410.
222222 T189 "Outstanding". Section 36a-596.
223223 T190 "Passbook savings account". Section 36a-316.
224224 T191 "Payment instrument". Section 36a-596.
225225 T192 "Periodic statement". Section 36a-316.
226226 T193 "Permissible investment". Section 36a-596.
227227 T194 "Person". Section 36a-184 and section 36a-485, as amended by this act.
228228 T195 "Post". Section 36a-316.
229229 T196 "Prepaid finance charge". Section 36a-746a.
230230 T197 "Prime quality". Section 36a-596.
231231 T198 "Principal amount of the loan". Section 36a-485, as amended by this act.
232232 T199 "Processor". Section 36a-155.
233233 T200 "Public deposit". Section 36a-330.
234234 T201 "Purchaser". Section 36a-596.
235235 T202 "Qualified financial contract". Section 36a-428n.
236236 T203 "Qualified public depository" and "depository". Section 36a-330.
237237 T204 "Real estate". Section 36a-457b.
238238 T205 "Real estate brokerage activity". Section 36a-485, as amended by this act.
239239 T206 "Records". Section 36a-17.
240240 T207 "Registered mortgage loan originator". Section 36a-485, as amended by
241241 T208 this act.
242242 T209 "Related person". Section 36a-53.
243243 T210 "Relocate". Sections 36a-145 and 36a-462a.
244244 T211 "Residential mortgage loan". Section 36a-485, as amended by this act.
245245 T212 ["Residential property". Section 36a-485.]
246246 T213 "Residential real estate". Section 36a-485, as amended by this act.
247247 T214 "Resulting entity". Section 36a-34.
248248 T215 "Retail buyer". Sections 36a-535 and 36a-770.
249249 T216 "Retail credit transaction". Section 42-100b.
250250 T217 "Retail installment contract". Sections 36a-535 and 36a-770.
251251 T218 "Retail installment sale". Sections 36a-535 and 36a-770.
252252 T219 "Retail seller". Sections 36a-535 and 36a-770.
253253 T220 "Reverse annuity mortgage loan". Section 36a-265.
254254 T221 "Sales finance company". Sections 36a-535 and 36a-770.
255255 T222 "Savings department". Section 36a-285.
256256 T223 "Savings deposit". Section 36a-316.
257257 T224 "Secondary mortgage loan". Section 36a-485, as amended by this act.
258258 T225 "Security convertible into a voting security". Section 36a-184.
259259 T226 "Senior management". Section 36a-435b.
260260 T227 "Settlement agent". Section 36a-494, as amended by this act.
261261 T228 "Share". Section 36a-435b.
262262 T229 "Simulated check". Section 36a-485, as amended by this act.
263263 T230 "Single common bond membership". Section 36a-435b.
264264 T231 "Special mortgage". Section 36a-760c.
265265 T232 "Social purpose investment". Section 36a-277.
266266 T233 "Sponsored". Section 36a-485, as amended by this act.
267267 T234 "Standard mortgage loan". Section 36a-265.
268268 T235 "System". Section 36a-485, as amended by this act.
269269 T236 "Table funding agreement". Section 36a-485, as amended by this act.
270270 T237 "Tax and loan account". Sections 36a-301 and 36a-456b.
271271 T238 "The Savings Bank Life Insurance Company". Section 36a-285.
272272 T239 "Time account". Section 36a-316.
273273 T240 "Travelers check". Section 36a-596.
274274 T241 "Troubled Connecticut credit union". Section 36a-448a.
275275 T242 "Unique identifier". Section 36a-485, as amended by this act.
276276 T243 "Unsecured loan". Section 36a-615.
277277 T244 "Warehouse agreement". Section 36a-485, as amended by this act.
278278
279279 T1
280280
281281 "Account". Sections 36a-155 and 36a-365.
282282
283283 T2
284284
285285 "Additional proceeds". Section 36a-746e.
286286
287287 T3
288288
289289 "Administrative expense". Section 36a-237.
290290
291291 T4
292292
293293 "Advance fee". Sections 36a-485, as amended by this act, and 36a-615.
294294
295295 T5
296296
297297 "Advertise", [or] "advertisement" or "advertising". Section 36a-485, as
298298
299299 T6
300300
301301 amended by this act.
302302
303303 T7
304304
305305 "Agency bank". Section 36a-285.
306306
307307 T8
308308
309309 "Agent". Section 36a-494, as amended by this act.
310310
311311 T9
312312
313313 "Alternative mortgage loan". Section 36a-265.
314314
315315 T10
316316
317317 "Amount financed". Section 36a-690.
318318
319319 T11
320320
321321 "Annual percentage rate". Section 36a-690.
322322
323323 T12
324324
325325 "Annual percentage yield". Section 36a-316.
326326
327327 T13
328328
329329 "Annuities". Section 36a-455a.
330330
331331 T14
332332
333333 "Applicant". Section 36a-736.
334334
335335 T15
336336
337337 "APR". Section 36a-746a.
338338
339339 T16
340340
341341 "Assessment area". Section 36a-37.
342342
343343 T17
344344
345345 "Assets". Section 36a-70.
346346
347347 T18
348348
349349 "Associate". Section 36a-184.
350350
351351 T19
352352
353353 "Associated member". Section 36a-458a.
354354
355355 T20
356356
357357 "Bank". Section 36a-30.
358358
359359 T21
360360
361361 "Bankers' bank". Section 36a-70.
362362
363363 T22
364364
365365 "Banking business". Section 36a-425.
366366
367367 T23
368368
369369 "Basic services". Section 36a-437a.
370370
371371 T24
372372
373373 "Billing cycle". Section 36a-565.
374374
375375 T25
376376
377377 "Bona fide nonprofit organization". Section 36a-487, as amended by this
378378
379379 T26
380380
381381 act, and section 36a-655.
382382
383383 T27
384384
385385 "Branch". Sections 36a-145, 36a-410 and 36a-435b.
386386
387387 T28
388388
389389 "Branch office". Section 36a-485, as amended by this act.
390390
391391 T29
392392
393393 "Branch or agency net payment entitlement". Section 36a-428n.
394394
395395 T30
396396
397397 "Branch or agency net payment obligation". Section 36a-428n.
398398
399399 T31
400400
401401 "Broker". Section 36a-746a.
402402
403403 T32
404404
405405 "Business and industrial development corporation". Section 36a-626.
406406
407407 T33
408408
409409 "Business and property in this state". Section 36a-428n.
410410
411411 T34
412412
413413 "Capital". Section 36a-435b.
414414
415415 T35
416416
417417 "Cash advance". Section 36a-564.
418418
419419 T36
420420
421421 "Cash price". Section 36a-770.
422422
423423 T37
424424
425425 "Certificate of incorporation". Section 36a-435b.
426426
427427 T38
428428
429429 "CHFA loan". Section 36a-760.
430430
431431 T39
432432
433433 "Clerical or support duties". Section 36a-485, as amended by this act.
434434
435435 T40
436436
437437 "Closely related activities". Sections 36a-250 and 36a-455a.
438438
439439 T41
440440
441441 "Collective managing agency account". Section 36a-365.
442442
443443 T42
444444
445445 "Commercial vehicle". Section 36a-770.
446446
447447 T43
448448
449449 "Community bank". Section 36a-70.
450450
451451 T44
452452
453453 "Community credit union". Section 36a-37.
454454
455455 T45
456456
457457 "Community development bank". Section 36a-70.
458458
459459 T46
460460
461461 "Community reinvestment performance". Section 36a-37.
462462
463463 T47
464464
465465 "Connecticut holding company". Sections 36a-53 and 36a-410.
466466
467467 T48
468468
469469 "Consolidate". Section 36a-145.
470470
471471 T49
472472
473473 "Construction loan". Section 36a-458a.
474474
475475 T50
476476
477477 "Consumer". Sections 36a-155, 36a-676 and 36a-695.
478478
479479 T51
480480
481481 "Consumer Credit Protection Act". Section 36a-676.
482482
483483 T52
484484
485485 "Consumer debtor" and "debtor". Sections 36a-645 and 36a-800.
486486
487487 T53
488488
489489 "Consumer collection agency". Section 36a-800.
490490
491491 T54
492492
493493 "Consummation". Section 36a-746a.
494494
495495 T55
496496
497497 "Control person". Section 36a-485, as amended by this act.
498498
499499 T56
500500
501501 "Controlling interest". Section 36a-276.
502502
503503 T57
504504
505505 "Conventional mortgage rate". Section 36a-760.
506506
507507 T58
508508
509509 "Corporate". Section 36a-435b.
510510
511511 T59
512512
513513 "Credit". Sections 36a-645 and 36a-676.
514514
515515 T60
516516
517517 "Credit manager". Section 36a-435b.
518518
519519 T61
520520
521521 "Creditor". Sections 36a-676, 36a-695 and 36a-800.
522522
523523 T62
524524
525525 "Credit card", "cardholder" and "card issuer". Section 36a-676.
526526
527527 T63
528528
529529 "Credit clinic". Section 36a-700.
530530
531531 T64
532532
533533 "Credit rating agency". Section 36a-695.
534534
535535 T65
536536
537537 "Credit report". Section 36a-695.
538538
539539 T66
540540
541541 "Credit sale". Section 36a-676.
542542
543543 T67
544544
545545 "Credit union service organization". Section 36a-435b.
546546
547547 T68
548548
549549 "Credit union service organization services". Section 36a-435b.
550550
551551 T69
552552
553553 "De novo branch". Section 36a-410.
554554
555555 T70
556556
557557 "Debt". Section 36a-645.
558558
559559 T71
560560
561561 "Debt adjustment". Section 36a-655.
562562
563563 T72
564564
565565 "Debt mutual fund". Sections 36a-275 and 36a-459a.
566566
567567 T73
568568
569569 "Debt securities". Sections 36a-275 and 36a-459a.
570570
571571 T74
572572
573573 "Debtor". Section 36a-655.
574574
575575 T75
576576
577577 "Deliver". Section 36a-316.
578578
579579 T76
580580
581581 "Deposit". Section 36a-316.
582582
583583 T77
584584
585585 "Deposit account". Section 36a-316.
586586
587587 T78
588588
589589 "Deposit account charge". Section 36a-316.
590590
591591 T79
592592
593593 "Deposit account disclosures". Section 36a-316.
594594
595595 T80
596596
597597 "Deposit contract". Section 36a-316.
598598
599599 T81
600600
601601 "Deposit services". Section 36a-425.
602602
603603 T82
604604
605605 "Depositor". Section 36a-316.
606606
607607 T83
608608
609609 "Depository institution". Section 36a-485, as amended by this act.
610610
611611 T84
612612
613613 "Director". Section 36a-435b.
614614
615615 T85
616616
617617 "Dwelling". Section 36a-485, as amended by this act.
618618
619619 T86
620620
621621 "Earning period". Section 36a-316.
622622
623623 T87
624624
625625 "Electronic payment instrument". Section 36a-596.
626626
627627 T88
628628
629629 "Eligible collateral". Section 36a-330.
630630
631631 T89
632632
633633 "Eligible entity". Section 36a-34.
634634
635635 T90
636636
637637 "Employee". Section 36a-485, as amended by this act.
638638
639639 T91
640640
641641 "Equity mutual fund". Sections 36a-276 and 36a-459a.
642642
643643 T92
644644
645645 "Equity security". Sections 36a-276 and 36a-459a.
646646
647647 T93
648648
649649 "Executive officer". Sections 36a-263 and 36a-469c.
650650
651651 T94
652652
653653 "Expedited Connecticut bank". Section 36a-70.
654654
655655 T95
656656
657657 "Experience in the mortgage business". Section 36a-488, as amended by
658658
659659 T96
660660
661661 this act.
662662
663663 T97
664664
665665 "Federal banking agency". Section 36a-485, as amended by this act.
666666
667667 T98
668668
669669 "Federal Credit Union Act". Section 36a-435b.
670670
671671 T99
672672
673673 "Federal Home Mortgage Disclosure Act". Section 36a-736.
674674
675675 T100
676676
677677 "FHA loan". Section 36a-760.
678678
679679 T101
680680
681681 "Fiduciary". Section 36a-365.
682682
683683 T102
684684
685685 "Filing fee". Section 36a-770.
686686
687687 T103
688688
689689 "Finance charge". Sections 36a-690 and 36a-770.
690690
691691 T104
692692
693693 "Financial institution". Sections 36a-41, 36a-44a, 36a-155, 36a-316, 36a-330,
694694
695695 T105
696696
697697 36a-435b, 36a-736 and 36a-755.
698698
699699 T106
700700
701701 "Financial records". Section 36a-41.
702702
703703 T107
704704
705705 "First mortgage loan". Sections 36a-485, as amended by this act, 36a-705,
706706
707707 T108
708708
709709 36a-715 and 36a-725.
710710
711711 T109
712712
713713 "Foreign banking corporation". Section 36a-425.
714714
715715 T110
716716
717717 "Fully indexed rate". Section 36a-760b.
718718
719719 T111
720720
721721 "General facility". Section 36a-580.
722722
723723 T112
724724
725725 "Global net payment entitlement". Section 36a-428n.
726726
727727 T113
728728
729729 "Global net payment obligation". Section 36a-428n.
730730
731731 T114
732732
733733 "Goods". Sections 36a-535 and 36a-770.
734734
735735 T115
736736
737737 "Graduated payment mortgage loan". Section 36a-265.
738738
739739 T116
740740
741741 "Guardian". Section 36a-365.
742742
743743 T117
744744
745745 "High cost home loan". Section 36a-746a.
746746
747747 T118
748748
749749 "Holder". Section 36a-596.
750750
751751 T119
752752
753753 "Home banking services". Section 36a-170.
754754
755755 T120
756756
757757 "Home banking terminal". Section 36a-170.
758758
759759 T121
760760
761761 "Home improvement loan". Section 36a-736.
762762
763763 T122
764764
765765 "Home purchase loan". Section 36a-736.
766766
767767 T123
768768
769769 "Home state". Section 36a-410.
770770
771771 T124
772772
773773 "Housing finance agency". Section 36a-487, as amended by this act.
774774
775775 T125
776776
777777 "Immediate family member". Section 36a-435b and section 36a-485, as
778778
779779 T126
780780
781781 amended by this act.
782782
783783 T127
784784
785785 "Independent contractor". Section 36a-485, as amended by this act.
786786
787787 T128
788788
789789 "Individual". Section 36a-485, as amended by this act.
790790
791791 T129
792792
793793 "Insider". Section 36a-454b.
794794
795795 T130
796796
797797 "Installment loan contract". Sections 36a-535 and 36a-770.
798798
799799 T131
800800
801801 "Insurance". Section 36a-455a.
802802
803803 T132
804804
805805 "Insurance bank". Section 36a-285.
806806
807807 T133
808808
809809 "Insurance department". Section 36a-285.
810810
811811 T134
812812
813813 "Interest". Section 36a-316.
814814
815815 T135
816816
817817 "Interest rate". Section 36a-316.
818818
819819 T136
820820
821821 "Interim interest". Section 36a-746a.
822822
823823 T137
824824
825825 "Lender". Sections 36a-746a, 36a-760 and 36a-770.
826826
827827 T138
828828
829829 "Lessor". Section 36a-676.
830830
831831 T139
832832
833833 "License". Section 36a-626.
834834
835835 T140
836836
837837 "Licensee". Sections 36a-596 and 36a-626.
838838
839839 T141
840840
841841 "Limited branch". Section 36a-145.
842842
843843 T142
844844
845845 "Limited facility". Section 36a-580.
846846
847847 T143
848848
849849 "Loan broker". Section 36a-615.
850850
851851 T144
852852
853853 "Loan processor or underwriter". Section 36a-485, as amended by this act.
854854
855855 T145
856856
857857 "Loss". Section 36a-330.
858858
859859 T146
860860
861861 "Made in this state". Section 36a-770.
862862
863863 T147
864864
865865 "Main office". Section 36a-485, as amended by this act.
866866
867867 T148
868868
869869 "Managing agent". Section 36a-365.
870870
871871 T149
872872
873873 "Manufactured home". Section 36a-457b.
874874
875875 T150
876876
877877 "Material litigation". Section 36a-596.
878878
879879 T151
880880
881881 "Member". Section 36a-435b.
882882
883883 T152
884884
885885 "Member business loan". Section 36a-458a.
886886
887887 T153
888888
889889 "Member in good standing". Section 36a-435b.
890890
891891 T154
892892
893893 "Membership share". Section 36a-435b.
894894
895895 T155
896896
897897 "Mobile branch". Sections 36a-145 and 36a-435b.
898898
899899 T156
900900
901901 "Money order". Section 36a-596.
902902
903903 T157
904904
905905 "Money transmission". Section 36a-365.
906906
907907 T158
908908
909909 "Mortgage". Section 36a-760g.
910910
911911 T159
912912
913913 "Mortgage broker". Sections 36a-485, as amended by this act, 36a-705 and
914914
915915 T160
916916
917917 36a-760.
918918
919919 T161
920920
921921 "Mortgage correspondent lender". Section 36a-485, as amended by this act.
922922
923923 T162
924924
925925 "Mortgage insurance". Section 36a-725.
926926
927927 T163
928928
929929 "Mortgage lender". Sections 36a-485, as amended by this act, 36a-705 and
930930
931931 T164
932932
933933 36a-725.
934934
935935 T165
936936
937937 "Mortgage loan". Sections 36a-261, 36a-265, 36a-457b [, 36a-485] and 36a-
938938
939939 T166
940940
941941 736.
942942
943943 T167
944944
945945 "Mortgage loan originator". Section 36a-485, as amended by this act.
946946
947947 T168
948948
949949 "Mortgage rate lock-in". Section 36a-705.
950950
951951 T169
952952
953953 "Mortgage servicing company". Section 36a-715.
954954
955955 T170
956956
957957 "Mortgagor". Section 36a-715.
958958
959959 T171
960960
961961 "Motor vehicle". Section 36a-770.
962962
963963 T172
964964
965965 "Multiple common bond membership". Section 36a-435b.
966966
967967 T173
968968
969969 "Municipality". Section 36a-800.
970970
971971 T174
972972
973973 "Net outstanding member business loan balance". Section 36a-458a.
974974
975975 T175
976976
977977 "Net worth". Sections 36a-441a, 36a-458a and 36a-596.
978978
979979 T176
980980
981981 "Network". Section 36a-155.
982982
983983 T177
984984
985985 "Nonprime home loan". Section 36a-760.
986986
987987 T178
988988
989989 "Nonrefundable". Section 36a-498.
990990
991991 T179
992992
993993 "Nontraditional mortgage product". Section 36a-489a, as amended by this
994994
995995 T180
996996
997997 act.
998998
999999 T181
10001000
10011001 "Note account". Sections 36a-301 and 36a-456b.
10021002
10031003 T182
10041004
10051005 "Office". Sections 36a-23, 36a-316 and 36a-485, as amended by this act.
10061006
10071007 T183
10081008
10091009 "Officer". Section 36a-435b.
10101010
10111011 T184
10121012
10131013 "Open-end credit plan". Section 36a-676.
10141014
10151015 T185
10161016
10171017 "Open-end line of credit". Section 36a-760.
10181018
10191019 T186
10201020
10211021 "Open-end loan". Section 36a-565.
10221022
10231023 T187
10241024
10251025 "Organization". Section 36a-800.
10261026
10271027 T188
10281028
10291029 "Out-of-state holding company". Section 36a-410.
10301030
10311031 T189
10321032
10331033 "Outstanding". Section 36a-596.
10341034
10351035 T190
10361036
10371037 "Passbook savings account". Section 36a-316.
10381038
10391039 T191
10401040
10411041 "Payment instrument". Section 36a-596.
10421042
10431043 T192
10441044
10451045 "Periodic statement". Section 36a-316.
10461046
10471047 T193
10481048
10491049 "Permissible investment". Section 36a-596.
10501050
10511051 T194
10521052
10531053 "Person". Section 36a-184 and section 36a-485, as amended by this act.
10541054
10551055 T195
10561056
10571057 "Post". Section 36a-316.
10581058
10591059 T196
10601060
10611061 "Prepaid finance charge". Section 36a-746a.
10621062
10631063 T197
10641064
10651065 "Prime quality". Section 36a-596.
10661066
10671067 T198
10681068
10691069 "Principal amount of the loan". Section 36a-485, as amended by this act.
10701070
10711071 T199
10721072
10731073 "Processor". Section 36a-155.
10741074
10751075 T200
10761076
10771077 "Public deposit". Section 36a-330.
10781078
10791079 T201
10801080
10811081 "Purchaser". Section 36a-596.
10821082
10831083 T202
10841084
10851085 "Qualified financial contract". Section 36a-428n.
10861086
10871087 T203
10881088
10891089 "Qualified public depository" and "depository". Section 36a-330.
10901090
10911091 T204
10921092
10931093 "Real estate". Section 36a-457b.
10941094
10951095 T205
10961096
10971097 "Real estate brokerage activity". Section 36a-485, as amended by this act.
10981098
10991099 T206
11001100
11011101 "Records". Section 36a-17.
11021102
11031103 T207
11041104
11051105 "Registered mortgage loan originator". Section 36a-485, as amended by
11061106
11071107 T208
11081108
11091109 this act.
11101110
11111111 T209
11121112
11131113 "Related person". Section 36a-53.
11141114
11151115 T210
11161116
11171117 "Relocate". Sections 36a-145 and 36a-462a.
11181118
11191119 T211
11201120
11211121 "Residential mortgage loan". Section 36a-485, as amended by this act.
11221122
11231123 T212
11241124
11251125 ["Residential property". Section 36a-485.]
11261126
11271127 T213
11281128
11291129 "Residential real estate". Section 36a-485, as amended by this act.
11301130
11311131 T214
11321132
11331133 "Resulting entity". Section 36a-34.
11341134
11351135 T215
11361136
11371137 "Retail buyer". Sections 36a-535 and 36a-770.
11381138
11391139 T216
11401140
11411141 "Retail credit transaction". Section 42-100b.
11421142
11431143 T217
11441144
11451145 "Retail installment contract". Sections 36a-535 and 36a-770.
11461146
11471147 T218
11481148
11491149 "Retail installment sale". Sections 36a-535 and 36a-770.
11501150
11511151 T219
11521152
11531153 "Retail seller". Sections 36a-535 and 36a-770.
11541154
11551155 T220
11561156
11571157 "Reverse annuity mortgage loan". Section 36a-265.
11581158
11591159 T221
11601160
11611161 "Sales finance company". Sections 36a-535 and 36a-770.
11621162
11631163 T222
11641164
11651165 "Savings department". Section 36a-285.
11661166
11671167 T223
11681168
11691169 "Savings deposit". Section 36a-316.
11701170
11711171 T224
11721172
11731173 "Secondary mortgage loan". Section 36a-485, as amended by this act.
11741174
11751175 T225
11761176
11771177 "Security convertible into a voting security". Section 36a-184.
11781178
11791179 T226
11801180
11811181 "Senior management". Section 36a-435b.
11821182
11831183 T227
11841184
11851185 "Settlement agent". Section 36a-494, as amended by this act.
11861186
11871187 T228
11881188
11891189 "Share". Section 36a-435b.
11901190
11911191 T229
11921192
11931193 "Simulated check". Section 36a-485, as amended by this act.
11941194
11951195 T230
11961196
11971197 "Single common bond membership". Section 36a-435b.
11981198
11991199 T231
12001200
12011201 "Special mortgage". Section 36a-760c.
12021202
12031203 T232
12041204
12051205 "Social purpose investment". Section 36a-277.
12061206
12071207 T233
12081208
12091209 "Sponsored". Section 36a-485, as amended by this act.
12101210
12111211 T234
12121212
12131213 "Standard mortgage loan". Section 36a-265.
12141214
12151215 T235
12161216
12171217 "System". Section 36a-485, as amended by this act.
12181218
12191219 T236
12201220
12211221 "Table funding agreement". Section 36a-485, as amended by this act.
12221222
12231223 T237
12241224
12251225 "Tax and loan account". Sections 36a-301 and 36a-456b.
12261226
12271227 T238
12281228
12291229 "The Savings Bank Life Insurance Company". Section 36a-285.
12301230
12311231 T239
12321232
12331233 "Time account". Section 36a-316.
12341234
12351235 T240
12361236
12371237 "Travelers check". Section 36a-596.
12381238
12391239 T241
12401240
12411241 "Troubled Connecticut credit union". Section 36a-448a.
12421242
12431243 T242
12441244
12451245 "Unique identifier". Section 36a-485, as amended by this act.
12461246
12471247 T243
12481248
12491249 "Unsecured loan". Section 36a-615.
12501250
12511251 T244
12521252
12531253 "Warehouse agreement". Section 36a-485, as amended by this act.
12541254
12551255 Sec. 2. Section 36a-485 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
12561256
12571257 As used in this section and sections 36a-486 to 36a-498f, inclusive, 36a-534a [and 36a-534b] to 36a-534c, inclusive, as amended by this act, unless the context otherwise requires:
12581258
12591259 (1) "Advance fee" means any consideration paid or given, directly or indirectly, to a mortgage lender, mortgage correspondent lender or mortgage broker required to be licensed pursuant to sections 36a-485 to [36a-498a] 36a-498f, inclusive, and sections 36a-534a and 36a-534b, as amended by this act, prior to the closing of a residential mortgage loan to any person, including, but not limited to, loan fees, points, broker's fees or commissions, transaction fees or similar prepaid finance charges;
12601260
12611261 (2) "Advertise", "advertisement" or "advertising" means the use of any announcement, statement, assertion or representation that is placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or over any radio or television station, by means of the Internet, or by other electronic means of distributing information, by personal contact, or in any other way;
12621262
12631263 (3) "Branch office" means a location other than the main office at which a licensee or any person on behalf of a licensee acts as a mortgage lender, mortgage correspondent lender or mortgage broker;
12641264
12651265 (4) "Control person" means an individual that directly or indirectly exercises control over another person. Any person that (A) is a director, general partner or executive officer; (B) directly or indirectly has the right to vote ten per cent or more of a class of any voting security or has the power to sell or direct the sale of ten per cent or more of any class of voting securities; (C) in the case of a limited liability company, is a managing member; or (D) in the case of a partnership, has the right to receive upon dissolution, or has contributed, ten per cent or more of the capital, is presumed to be a control person. For purposes of this subdivision, "control" means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract or otherwise;
12661266
12671267 (5) "Depository institution" has the same meaning as provided in Section 3 of the Federal Deposit Insurance Act, 12 USC 1813, and includes any Connecticut credit union, federal credit union or out-of-state credit union;
12681268
12691269 (6) "Dwelling" has the same meaning as provided in Section 103 of the Consumer Civil Protection Act, 15 USC 1602;
12701270
12711271 (7) "Employee" means an individual (A) whose manner and means of work performance are subject to the right of control of, or are controlled by, a person, and (B) whose compensation is reported or required to be reported on a W-2 form issued by the controlling person. For purposes of the definition of "registered mortgage loan originator", "employee" has the foregoing meaning or such other meaning as the federal banking agencies may issue in connection with such agencies' implementation of such agencies' responsibilities under the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC 5101 et seq.;
12721272
12731273 [(6)] (8) "Federal banking agency" means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration and the Federal Deposit Insurance Corporation;
12741274
12751275 [(7)] (9) "First mortgage loan" means a residential mortgage loan that is secured by a first mortgage;
12761276
12771277 [(8)] (10) "Immediate family member" means a spouse, child, sibling, parent, grandparent or grandchild and includes stepparents, stepchildren, stepsiblings and adoptive relationships;
12781278
12791279 (11) "Independent contractor" means an individual retained on a basis where the individual is not an employee of any person in connection with the services such individual provides and whose compensation is reported or required to be reported on an Internal Revenue Service Form 1099 issued by the retaining person;
12801280
12811281 [(9)] (12) "Individual" means a natural person;
12821282
12831283 [(10)] (13) "Loan processor or underwriter" means an individual who performs clerical or support duties. The term "clerical or support duties" includes, subsequent to the receipt of an application, (A) the receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan, and (B) communication with a consumer to obtain the information necessary for the processing or underwriting of a loan to the extent that such communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms;
12841284
12851285 [(11)] (14) "Main office" means the main address designated on the system;
12861286
12871287 [(12)] (15) "Mortgage broker" (A) means a person who [,] (i) for compensation or gain or [in] with the expectation of compensation or gain [(A)] (I) takes a residential mortgage loan application, or [(B)] (II) offers or negotiates terms of a residential mortgage loan, [excluding] and (ii) is not the prospective source of the funds for the residential mortgage loan, (B) but does not include (i) an individual who is [sponsored by another] licensed as a mortgage loan originator acting as a mortgage loan originator on behalf of such mortgage loan originator's sponsoring mortgage lender, mortgage correspondent lender, [or] mortgage broker or exempt registrant, or (ii) an individual exempt from mortgage loan originator licensure under subdivision (2) of subsection (b) of section 36a-486, as amended by this act, when acting within the scope of such exemption;
12881288
12891289 [(13)] (16) "Mortgage correspondent lender" means a person engaged in the business of making residential mortgage loans in such person's own name where the loans are not held by such person for more than ninety days and are funded by another person through a warehouse agreement, table funding agreement or similar agreement;
12901290
12911291 [(14)] (17) "Mortgage lender" means a person engaged in the business of making residential mortgage loans in such person's own name utilizing such person's own funds or by funding loans through a warehouse agreement, table funding agreement or similar agreement;
12921292
12931293 [(15)] (18) "Mortgage loan originator" means an individual who for compensation or gain or with the expectation of compensation or gain, either for such individual or for the person employing or retaining such individual, (A) takes a residential mortgage loan application, or (B) offers or negotiates terms of a residential mortgage loan. "Mortgage loan originator" does not include (i) an individual engaged solely as a loan processor or underwriter; (ii) a person who only performs real estate brokerage activities and is licensed in accordance with chapter 392, unless the person is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator; (iii) a person solely involved in extensions of credit relating to timeshare plans, as that term is defined in Paragraph 53D of 11 USC 101; or (iv) any individual who solely renegotiates terms for existing mortgage loans on behalf of a mortgagee and who does not otherwise act as a mortgage loan originator, unless the United States Department of Housing and Urban Development, the Bureau of Consumer Financial Protection or a court of competent jurisdiction determines that the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., requires such individual to be licensed as a mortgage loan originator under state laws implementing said S.A.F.E. Mortgage Licensing Act;
12941294
12951295 [(16)] (19) "Office" means a branch office or a main office;
12961296
12971297 [(17)] (20) "Person" means a natural person, corporation, company, limited liability company, partnership or association;
12981298
12991299 [(18)] (21) "Principal amount of the loan" means the gross amount the borrower is obligated to repay including any prepaid finance charge that is financed, and any other charge that is financed;
13001300
13011301 [(19)] (22) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including (A) acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property; (B) bringing together parties interested in the sale, purchase, lease, rental or exchange of real property; (C) negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to any such transaction; (D) engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (E) offering to engage in any activity, or act in any capacity, described in this subdivision;
13021302
13031303 [(20)] (23) "Registered mortgage loan originator" means any individual who (A) meets the definition of mortgage loan originator and is an employee of a depository institution, a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration; and (B) is registered with and maintains a unique identifier through the system;
13041304
13051305 [(21)] (24) "Residential mortgage loan" means any loan primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling [as defined in Section 103 of the Consumer Credit Protection Act, 15 USC 1602,] or residential real estate upon which is constructed or intended to be constructed a dwelling; [, as so defined;]
13061306
13071307 [(22)] (25) "Residential real estate" means any real property located in this state, upon which is constructed or intended to be constructed a dwelling; [as defined in Section 103 of the Consumer Credit Protection Act, 15 USC 1602]
13081308
13091309 [(23)] (26) "Secondary mortgage loan" means a residential mortgage loan that is secured, in whole or in part, by a mortgage, provided such property is subject to one or more prior mortgages;
13101310
13111311 [(24)] (27) "Simulated check" means a document that imitates or resembles a check but is not a negotiable instrument;
13121312
13131313 [(25)] (28) "Sponsored" means employed or retained as an independent contractor;
13141314
13151315 [(26)] (29) "System" means the Nationwide Mortgage Licensing System and Registry developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of mortgage lenders, mortgage correspondent lenders, mortgage brokers, mortgage loan originators and loan processors or underwriters;
13161316
13171317 [(27)] (30) "Table funding agreement" means an agreement wherein a person agrees to fund mortgage loans to be made in another person's name and to purchase such loans after they are made;
13181318
13191319 [(28)] (31) "Unique identifier" means a number or other identifier assigned by protocols established by the system; and
13201320
13211321 [(29)] (32) "Warehouse agreement" means an agreement to provide credit to a person to enable the person to have funds to make residential mortgage loans and hold such loans pending sale to other persons.
13221322
13231323 Sec. 3. Section 36a-486 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13241324
13251325 (a) No person shall engage in the business of making residential mortgage loans or act as a mortgage broker in this state unless such person has first obtained the required license for its main office and each branch office where such business is conducted in accordance with the provisions of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, as amended by this act. Effective April 1, 2010, any such person who is an individual shall also obtain a mortgage loan originator license prior to conducting such business unless such individual does not engage directly in the activities of a mortgage loan originator. A person, other than a licensed mortgage loan originator acting on behalf of a mortgage lender or mortgage correspondent lender, shall be deemed to be engaged in the business of making residential mortgage loans if such person advertises, causes to be advertised, solicits or offers to make residential mortgage loans, either directly or indirectly. A person, other than a licensed mortgage loan originator acting on behalf of a mortgage broker, shall be deemed to be acting as a mortgage broker if such person advertises or causes to be advertised that such person will negotiate, solicit, place or find a residential mortgage loan, either directly or indirectly. A mortgage correspondent lender shall not be deemed to be acting as a mortgage lender if such mortgage correspondent lender makes a loan utilizing its own funds in a situation where another person does not honor such person's commitment to fund the loan.
13261326
13271327 (b) (1) No person licensed as a mortgage lender, mortgage correspondent lender or mortgage broker shall engage the services of a mortgage loan originator or of a loan processor or underwriter required to be licensed under [subdivision (3) of this subsection] this section unless such mortgage loan originator or loan processor or underwriter is licensed under section 36a-489, as amended by this act. An individual, unless specifically exempted under subdivision (2) of this subsection, shall not engage in the business of a mortgage loan originator on behalf of a licensee or a person exempt under section 36a-487, as amended by this act, with respect to any residential mortgage loan without first obtaining and maintaining annually a license as a mortgage loan originator under section 36a-489, as amended by this act. An individual, unless specifically exempted under subdivision (2) of this subsection, shall be deemed to be engaged in the business of a mortgage loan originator if such individual: (A) Acts as a mortgage loan originator in connection with any residential mortgage loan on behalf of a licensee or person exempt under section 36a-487, as amended by this act; or (B) makes any representation to the public through advertising or other means of communication that such individual can or will act as a mortgage loan originator on behalf of a licensee or person exempt under section 36a-487, as amended by this act. Each licensed mortgage loan originator and each licensed loan processor or underwriter shall register with and maintain a valid unique identifier issued by the system. No individual may act as a mortgage loan originator or loan processor or underwriter for more than one person at the same time. The license of a mortgage loan originator or a loan processor or underwriter is not effective during any period when such mortgage loan originator or a loan processor or underwriter is not sponsored by a licensed mortgage lender, mortgage correspondent lender or mortgage broker, or by a person registered as an exempt registrant under subsection (c) of section 36a-487, or during any period in which the license of the mortgage lender, mortgage correspondent lender or mortgage broker with whom such originator or loan processor or underwriter is associated has been suspended. Either the mortgage loan originator, the loan processor or underwriter or the sponsor may file a notification of the termination of sponsorship with the system.
13281328
13291329 (2) The following are exempt from this section: (A) A registered mortgage loan originator or an employee of an institution or subsidiary described in subdivision [(20)] (23) of section 36a-485, as amended by this act, who is not required to be registered under Section 1507 of the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., when acting for such institution or subsidiary; [,] (B) an individual who offers or negotiates the terms of a residential mortgage loan with or on behalf of an immediate family member of such individual; [,] (C) an individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling [, as defined in Section 103 of the Consumer Credit Protection Act, 15 USC 1602,] that served as the individual's residence, [and] unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition; (D) a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator or by any agent of such mortgage lender, mortgage correspondent lender, mortgage broker or other mortgage loan originator; (E) an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan as an employee of a federal, state or local government agency or housing finance agency exempt from licensure pursuant to section 36a-487, as amended by this act, and who does so only pursuant to such individual's official duties as an employee of such agency; (F) an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan as an employee of an organization that has obtained bona fide nonprofit status from the commissioner and is exempt from licensure pursuant to section 36a-487, as amended by this act, and who does so only pursuant to such individual's official duties as an employee of such organization; and (G) an individual who offers or negotiates the terms of a residential mortgage loan secured by a dwelling that is not the individual's residence but is owned by such individual, unless the context demonstrates that such individual engaged in such activities with a degree of habitualness or repetition.
13301330
13311331 [(3) A loan processor or underwriter who is: (A) An independent contractor, or (B) employed by any person other than: (i) A licensed mortgage lender, mortgage correspondent lender or mortgage broker; or (ii) any person exempt from such licensure under subdivision (1) of subsection (a) of section 36a-487 may not engage in the activities of a loan processor or underwriter unless such loan processor or underwriter obtains and maintains a license as a loan processor or underwriter under section 36a-489.]
13321332
13331333 (3) No loan processor or underwriter shall engage in the activities of a loan processor or underwriter unless such loan processor or underwriter obtains and maintains a license as a loan processor or underwriter under section 36a-489, as amended by this act, except an individual engaged in loan processor or underwriter activities:
13341334
13351335 (A) As an employee of a licensed mortgage lender, mortgage correspondent lender or mortgage broker and who engages in such activities at the direction and subject to the supervision of a licensed mortgage loan originator of such licensee;
13361336
13371337 (B) As an employee of a person exempt from licensure under subdivision (1) of subsection (a) of section 36a-487 and who engages in such activities at the direction of and subject to the supervision of either a licensed mortgage loan originator or a registered mortgage loan originator of such exempt entity; or
13381338
13391339 (C) In any capacity where the residential mortgage loans for which such individual provides services were originated by an individual not required to be licensed or registered as a mortgage loan originator under part I of chapter 668.
13401340
13411341 (4) An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.
13421342
13431343 (c) If the United States Department of Housing and Urban Development, the Bureau of Consumer Financial Protection or a court of competent jurisdiction determines that the S.A.F.E. Mortgage Licensing Act of 2008, 12 USC Section 5101 et seq., requires an individual described in subparagraph (B) (iv) of subdivision [(15)] (18) of section 36a-485, as amended by this act, to be licensed as a mortgage loan originator under state laws implementing said S.A.F.E. Mortgage Licensing Act, such individual may continue to act in such individual's current capacity, provided such individual files an application for a mortgage loan originator license not later than the date sixty days from the date of such determination by the United States Department of Housing and Urban Development, the Bureau of Consumer Financial Protection or a court of competent jurisdiction.
13441344
13451345 (d) Each residential mortgage loan taken, offered, negotiated, solicited, arranged, placed, found, [or] made, processed or underwritten without a license shall constitute a separate violation for purposes of section 36a-50.
13461346
13471347 Sec. 4. Subsection (b) of section 36a-487 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13481348
13491349 (b) The following are exempt from licensing as a mortgage lender or mortgage correspondent lender under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, as amended by this act:
13501350
13511351 (1) Persons making five or fewer residential mortgage loans within any period of twelve consecutive months, provided nothing herein shall relieve such persons from complying with all applicable laws;
13521352
13531353 (2) Bona fide nonprofit [corporations] organizations making residential mortgage loans [to] that promote home ownership for the economically disadvantaged. For purposes of this subdivision, a "bona fide nonprofit organization" means an organization that has filed a written certified submission to the commissioner in a form prescribed by the commissioner and with such documentation as may be required by the commissioner and that demonstrates to the satisfaction of the commissioner that the organization: (A) Has the status of a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (B) promotes affordable housing or provides home ownership education or similar services; (C) conducts its activities in a manner that serves public or charitable purposes rather than commercial purposes; (D) receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients; (E) compensates its employees in a manner that does not incentivize employees to act other than in the best interests of its clients; (F) provides or identifies for the borrower residential mortgage loans (i) with terms favorable to the borrower, which means such terms must be consistent with loan origination in a public or charitable context, not a commercial context, and (ii) comparable to mortgage loans and housing assistance provided under government housing assistance programs; (G) is certified either by the United States Department of Housing and Urban Development or a state housing authority; and (H) meets such other standards as the commissioner may by regulation require. Any organization that demonstrates to the satisfaction of the commissioner its status as a bona fide nonprofit organization shall, not later than December thirty-first of each year, submit to the commissioner a renewed certification and documentation to update all information last filed in support of such status and timely report any change in any information previously submitted;
13541354
13551355 (3) Agencies of the federal government, or any state or municipal government, or any [quasi-governmental] housing finance agency making residential mortgage loans under the specific authority of the laws of any state or the United States. For purposes of this subdivision, a "housing finance agency" means any authority: (A) Chartered by a state to help meet the affordable housing needs of the residents of the state; (B) supervised directly or indirectly by the state government; (C) subject to audit and review by the state in which it operates; and (D) whose activities make it eligible to be a member of the National Council of State Housing Agencies;
13561356
13571357 (4) Persons licensed under sections 36a-555 to 36a-573, inclusive, when making residential mortgage loans authorized by said sections;
13581358
13591359 (5) Persons owning real property who take back from the buyer of such property a secondary mortgage loan in lieu of any portion of the purchase price of the property;
13601360
13611361 (6) Any corporation or its affiliate that makes residential mortgage loans exclusively for the benefit of its employees or agents;
13621362
13631363 (7) Any corporation, licensed in accordance with section 38a-41, or its affiliate or subsidiary, that makes residential mortgage loans to promote home ownership in urban areas;
13641364
13651365 (8) Persons acting as fiduciaries with respect to any employee pension benefit plan qualified under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, who make residential mortgage loans solely to plan participants from plan assets; and
13661366
13671367 (9) Persons making secondary mortgage loans to [individuals related to the maker by blood or marriage] immediate family members.
13681368
13691369 Sec. 5. Subdivision (1) of subsection (a) of section 36a-488 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13701370
13711371 (a) (1) The commissioner shall not issue a mortgage lender license, a mortgage correspondent lender license or a mortgage broker license to any person unless such person meets the following tangible net worth and experience requirements, as applicable: (A) The minimum tangible net worth requirement for a mortgage lender shall be two hundred fifty thousand dollars and the minimum tangible net worth requirement for a mortgage correspondent lender and a mortgage broker shall be (i) prior to March 2, 2009, twenty-five thousand dollars, and (ii) on and after March 2, 2009, fifty thousand dollars, and (B) a mortgage lender, mortgage correspondent lender or mortgage broker shall have, at the main office for which the license is sought, a qualified individual and, at each branch office, a branch manager (i) who have supervisory authority over the lending or brokerage activities, (ii) who have at least three years' experience in the mortgage business within the five years immediately preceding the date of the application for the license, [and] (iii) who, effective April 1, 2010, have completed the prelicensing education requirement described in section 36a-489a, as amended by this act, and passed a written test that meets the test requirement described in section 36a-489a, as amended by this act, and (iv) who, effective November 1, 2012, are licensed as a mortgage loan originator under section 36a-489, as amended by this act. As used in this subdivision, "experience in the mortgage business" means paid experience in the origination, processing or underwriting of residential mortgage loans, the marketing of such loans in the secondary market or in the supervision of such activities, or any other relevant experience as determined by the commissioner.
13721372
13731373 Sec. 6. Subsection (a) of section 36a-489 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13741374
13751375 (a) (1) The commissioner shall not issue an initial license for a mortgage lender, mortgage correspondent lender or mortgage broker unless the commissioner, at a minimum, finds that: (A) The applicant meets the requirements of subsection (a) of section 36a-488, as amended by this act; (B) notwithstanding the provisions of section 46a-80, the applicant, the control persons of the applicant and the qualified individual or branch manager with supervisory authority at the office for which the license is sought have not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of the application for licensing or at any time preceding the date of application if such felony involved an act of fraud, dishonesty, a breach of trust or money laundering, provided any pardon or expungement of a conviction shall not be a conviction for purposes of this subdivision; (C) the applicant demonstrates that the financial responsibility, character and general fitness of the applicant, the control persons of the applicant and the qualified individual or branch manager having supervisory authority over the office for which the license is sought are such as to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, as amended by this act; (D) the applicant has met the surety bond requirement under section 36a-492; and (E) the applicant has not made a material misstatement in the application. If the commissioner fails to make such findings, the commissioner shall not issue a license, and shall notify the applicant of the denial and the reasons for such denial. For purposes of this subsection, the level of offense of the crime and the status of any conviction, pardon or expungement shall be determined by reference to the law of the jurisdiction where the case was prosecuted. In the event that such jurisdiction does not use the term "felony", "pardon" or "expungement", such terms shall include legally equivalent events.
13761376
13771377 (2) (A) The minimum standards for license renewal for a mortgage lender, mortgage correspondent lender or mortgage broker shall include the following: (i) The applicant continues to meet the minimum standards under subdivision (1) of this subsection; (ii) effective April 1, 2010, each qualified [person] individual and branch manager has completed the prelicensing education requirement described in section 36a-489a, as amended by this act, and passed a written test that meets the test requirement described in section 36a-489a, as amended by this act, or has satisfied the annual continuing education requirements described in subsection (c) of section 36a-489a, as amended by this act, as applicable, and effective November 1, 2012, each qualified individual and branch manager is licensed as a mortgage loan originator and has completed any applicable continuing education requirements described in subsection (c) of section 36a-489a, as amended by this act; and (iii) the mortgage lender, mortgage correspondent lender or mortgage broker has paid all required fees for renewal of the license.
13781378
13791379 (B) The license of a mortgage lender, mortgage correspondent lender or mortgage broker failing to satisfy the minimum standards for license renewal shall expire. The commissioner may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the system. The commissioner may automatically suspend a mortgage lender, mortgage correspondent lender or mortgage broker license if the licensee receives a deficiency on the system indicating that the payment required by subparagraph (A) of this subdivision was Returned-ACH or returned pursuant to such other term as may be utilized by the system to indicate that the payment was not accepted. After a license has been automatically suspended pursuant to this section, the commissioner shall give such licensee notice of the automatic suspension, pending proceedings for revocation or refusal to renew pursuant to section 36a-494, as amended by this act, and an opportunity for a hearing on such action in accordance with section 36a-51, and require such licensee to take or refrain from taking such action that, in the opinion of the commissioner, will effectuate the purposes of this section.
13801380
13811381 Sec. 7. Subdivision (1) of subsection (b) of section 36a-489 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13821382
13831383 (b) (1) The commissioner shall not issue an initial license for a mortgage loan originator or a loan processor or underwriter unless the commissioner, at a minimum, finds that the applicant has: (A) Never had a mortgage loan originator or equivalent loan processor or underwriter license revoked in any governmental jurisdiction, except that a subsequent formal vacating of such revocation shall not be deemed a revocation; (B) notwithstanding the provisions of section 46a-80, not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of the application for licensing or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering, provided any pardon or expungement of a conviction shall not be a conviction for purposes of this subdivision; (C) demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator or loan processor or underwriter will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, as amended by this act; (D) for mortgage loan originator applicants, effective April 1, 2010, and for loan processor or underwriter applicants, effective October 1, 2011, completed the prelicensing education requirement described in section 36a-489a, as amended by this act, and passed a written test that meets the test requirement described in section 36a-489a, as amended by this act, and, effective November 1, 2012, for qualified individuals or branch managers seeking initial licensure as a mortgage loan originator, completed any continuing education required of them in their position as qualified individuals and branch managers pursuant to section 36a-489a, as amended by this act; (E) effective July 31, 2010, met the surety bond requirement under section 36a-492 and, effective October 1, 2011, in the case of a mortgage loan originator required to be licensed under section 36a-671e, met the surety bond requirements under sections 36a-492 and 36a-671d; and (F) not made a material misstatement in the application. If the commissioner denies an application for a mortgage loan originator or a loan processor or underwriter license, the commissioner shall notify the applicant and may notify the sponsor or any other person the commissioner deems appropriate of the denial and the reasons for such denial. For purposes of this subsection, the level of offense of the crime and the status of any conviction, pardon or expungement shall be determined by reference to the law of the jurisdiction where the case was prosecuted. In the event that such jurisdiction does not use the term "felony", "pardon" or "expungement", those terms shall include legally equivalent events.
13841384
13851385 Sec. 8. Section 36a-489a of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
13861386
13871387 (a) (1) In order to meet the prelicensing education and testing requirements referred to in sections 36a-488 and 36a-489, as amended by this act, an individual shall complete at least twenty hours of education approved in accordance with subdivision (2) of this subsection, which shall include at least (A) three hours of instruction on relevant federal law and regulations; (B) three hours of ethics, including instruction on fraud, consumer protection and fair lending issues; and (C) two hours of training related to lending standards for the nontraditional mortgage product marketplace.
13881388
13891389 (2) For purposes of subdivision (1) of this subsection, prelicensing education courses shall be reviewed and approved by the system based upon reasonable standards. Review and approval of a prelicensing education course shall include review and approval of the course provider.
13901390
13911391 (3) Nothing in this subsection shall preclude any prelicensing education course, as approved by the system, that is provided by the sponsor or employer of the individual or an entity which is affiliated with the individual by an agency contract, or any subsidiary or affiliate of such sponsor, employer or entity.
13921392
13931393 (4) Prelicensing education may be offered either in a classroom, online or by any other means approved by the system.
13941394
13951395 (5) When prelicensing education requirements described in subdivision (1) of this subsection are completed in another state, such out-of-state prelicensing education requirements shall be accepted as credit towards completion of the prelicensing education requirements of this state, provided such out-of-state prelicensing education requirements are approved by the system.
13961396
13971397 (6) (A) An individual previously licensed under section 36a-489, as amended by this act, subsequent to the applicable effective date of the prelicensing and testing requirements referred to in section 36a-489, as amended by this act, who is applying to be relicensed shall prove that such individual has completed all of the continuing education requirements for the year in which the license was last held.
13981398
13991399 (B) An individual who previously held a position as a qualified individual or branch manager subsequent to the applicable effective date of the prelicensing and testing requirements referred to in section 36a-488, as amended by this act, at a time when such individual was not required to be licensed as a mortgage loan originator, may not hold such position again until such individual has completed all of the continuing education requirements for the year in which such individual last held such position and, effective November 1, 2012, has obtained the required mortgage loan originator license.
14001400
14011401 (b) (1) In order to meet the written test requirements referred to in sections 36a-488 and 36a-489, as amended by this act, an individual shall pass, in accordance with the standards established under this subsection, a qualified written test developed by the system and administered by a test provider approved by the system based upon reasonable standards.
14021402
14031403 (2) A written test shall not be treated as a qualified written test for purposes of subdivision (1) of this subsection unless the test adequately measures the individual's knowledge and comprehension in appropriate subject areas, including ethics, federal law and regulation pertaining to mortgage origination, state law and regulation pertaining to mortgage origination, and federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues.
14041404
14051405 (3) Nothing in this subsection shall prohibit a test provider approved by the system from providing a test at the location of the sponsor or employer, any subsidiary or affiliate of the sponsor or employer or any entity with which the individual holds an exclusive arrangement to conduct the business of a mortgage loan originator. [or acts as a qualified individual or branch manager.]
14061406
14071407 (4) (A) An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five per cent correct answers to questions.
14081408
14091409 (B) An individual may retake a test [four] three consecutive times with each consecutive taking occurring at least thirty days after the preceding test. After failing [four] three consecutive tests, an individual shall wait at least six months before taking the test again.
14101410
14111411 (C) (i) An individual who was licensed subsequent to the applicable effective date of the prelicensing and testing requirements referred to in section 36a-489, as amended by this act, who has not been licensed as a mortgage loan originator within the five-year period preceding the date of the filing of such individual's application for a mortgage loan originator license, not taking into account any time during which such individual is a registered mortgage loan originator, shall retake such test; and (ii) [a qualified individual or branch manager who held such a position after the effective date of prelicensing education and testing referred to in section 36a-488 and who has not held such position within the five-year period preceding the date of the filing on the system designating such individual as a qualified individual or branch manager shall retake such test, unless such individual was licensed as a mortgage loan originator during the five-year period preceding the date of the filing on the system designating such individual as a qualified individual or branch manager, not taking into account any time during which such individual is a registered mortgage loan originator; and (iii)] effective October 1, 2011, an individual licensed as a loan processor or underwriter who applies to be licensed again shall retake the test if such individual has not been licensed as a loan processor or underwriter within the five-year period preceding the date of the filing of such application, not taking into account any time during which such individual is engaged in loan processing or underwriting but not required to be licensed under subdivision (3) of subsection (b) of section 36a-486, as amended by this act.
14121412
14131413 (c) (1) In order to meet the annual continuing education requirements referred to in subsections (a) and (b) of section 36a-489, as amended by this act, a licensed mortgage loan originator, a qualified individual or branch manager and, effective October 1, 2011, a licensed loan processor or underwriter, shall complete at least eight hours of education approved in accordance with subdivision (2) of this subsection. Such courses shall include at least (A) three hours of instruction on relevant federal law and regulation; (B) two hours of ethics, including instruction on fraud, consumer protection and fair lending issues; and (C) two hours of training related to lending standards for the nontraditional mortgage product marketplace.
14141414
14151415 (2) For purposes of subdivision (1) of this subsection, continuing education courses shall be reviewed and approved by the system based upon reasonable standards. Review and approval of a continuing education course shall include review and approval of the course provider.
14161416
14171417 (3) Nothing in this subsection shall preclude any education course approved by the system that is provided by the sponsor or employer or an entity that is affiliated with the mortgage loan originator, qualified individual or branch manager or, effective October 1, 2011, loan processor or underwriter by an agency contract, or by any subsidiary or affiliate of such sponsor, employer or entity.
14181418
14191419 (4) Continuing education may be offered either in a classroom, online or by any other means approved by the system.
14201420
14211421 (5) Except as provided in procedures adopted under subsections (a) and (b) of section 36a-489, as amended by this act, or in regulations adopted under subdivision (9) of this subsection, a licensed mortgage loan originator, qualified individual or branch manager or, effective October 1, 2011, a licensed loan processor or underwriter, may only receive credit for a continuing education course in the year [in] for which the course is taken, and may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
14221422
14231423 (6) A licensed mortgage loan originator or a qualified individual or branch manager or, effective October 1, 2011, a licensed loan processor or underwriter who is an approved instructor of an approved continuing education course may receive credit for the licensee's own annual continuing education requirement at the rate of two hours credit for every one hour taught.
14241424
14251425 (7) When education requirements described in subdivision (1) of subsection (a) of this section are completed in another state, such out-of-state education requirements shall be accepted as credit towards completion of the education requirements of this state, provided such out-of-state education requirements are approved by the system.
14261426
14271427 (8) A licensed mortgage loan originator and, effective October 1, 2011, a licensed loan processor or underwriter who subsequently becomes unlicensed must complete the continuing education requirements for the last year in which the license was held prior to issuance of an initial or renewed license. A qualified individual or branch manager who ceases to hold such position shall complete the continuing education requirements for the last year in which such individual or branch manager held such position prior to [holding such position again] licensure as a mortgage loan originator.
14281428
14291429 (9) [A person] An individual who meets the requirements of subparagraphs (A)(i) and (A)(iii) of subdivision (2) of subsection (a) or (b) of section 36a-489, as amended by this act, may compensate for any deficiency in such individual's continuing education requirements pursuant to regulations adopted by the commissioner.
14301430
14311431 (d) For purposes of this section "nontraditional mortgage product" means any mortgage product other than a thirty-year fixed rate mortgage.
14321432
14331433 Sec. 9. Subdivision (1) of subsection (a) of section 36a-494 of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
14341434
14351435 (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, as amended by this act, 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 or other settlement statement.
14361436
14371437 Sec. 10. Subsection (a) of section 36a-498a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
14381438
14391439 (a) No mortgage lender licensee or mortgage correspondent lender licensee under section 36a-489, as amended by this act, and no person exempt from licensure under subdivision (1) of subsection (a) and subdivisions (1), (4) and (5) of subsection (b) of section 36a-487, as amended by this act, making a first mortgage loan may charge, impose or cause to be paid, directly or indirectly, prepaid finance charges that exceed in the aggregate, the greater of five per cent of the principal amount of the loan or two thousand dollars. If the proceeds of the loan are used to refinance an existing loan, the aggregate of the prepaid finance charges for the current refinancing and any previous financings by such licensee or exempt person or affiliate of such licensee or exempt person within two years of the current refinancing shall not exceed the greater of five per cent of the principal amount of the initial loan or two thousand dollars. The provisions of this section shall not prohibit such licensee or exempt person from charging, imposing or causing to be paid, directly or indirectly, prepaid finance charges in addition to those permitted by this section in connection with any additional proceeds received by the borrower in the refinancing, provided such prepaid finance charges on the additional proceeds shall not exceed five per cent of the additional proceeds.
14401440
14411441 Sec. 11. Subdivision (3) of subsection (c) of section 36a-534b of the 2012 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
14421442
14431443 (3) Any person making any filing or submission of any information on the system shall do so in accordance with the procedures and requirements of the system and pay the applicable fees or charges to the system. Each mortgage lender, mortgage correspondent lender, mortgage broker, mortgage loan originator and loan processor or underwriter licensee and each exempt registrant, to the extent required by the system, shall timely submit to the system accurate reports of condition that shall be in such form and shall contain such information as the system may require. Failure by a licensee to submit a timely and accurate report of condition shall constitute a violation of this provision. Failure of an exempt registrant to timely and accurately submit a report of condition shall form a basis to inactivate the licenses of all sponsored mortgage loan originators or loan processor or underwriters. To the extent that the system does not require submission of reports of condition by individual mortgage loan originator or loan processor or underwriter licensees, such individual licensees shall timely and accurately report all required information in their possession to their licensee's sponsor for purposes of their sponsor's reporting obligation. Failure of an individual licensee to timely and accurately report required information in their possession to their sponsor shall constitute a violation of this provision.
14441444
14451445 Sec. 12. Section 36a-534c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
14461446
14471447 The Banking Commissioner shall submit to the joint standing committee of the General Assembly having cognizance of matters relating to banks three annual reports that shall include financial statements of the State Regulatory Registry, LLC, concerning the [Nationwide Mortgage Licensing System described in section 36a-534b] system. Each such financial statement shall cover a twelve-month period. The commissioner shall submit such reports for three consecutive years not later than ten days after receipt of such financial statements by the commissioner.
14481448
14491449
14501450
14511451
14521452 This act shall take effect as follows and shall amend the following sections:
14531453 Section 1 October 1, 2012 36a-3
14541454 Sec. 2 October 1, 2012 36a-485
14551455 Sec. 3 October 1, 2012 36a-486
14561456 Sec. 4 October 1, 2012 36a-487(b)
14571457 Sec. 5 October 1, 2012 36a-488(a)(1)
14581458 Sec. 6 October 1, 2012 36a-489(a)
14591459 Sec. 7 October 1, 2012 36a-489(b)(1)
14601460 Sec. 8 October 1, 2012 36a-489a
14611461 Sec. 9 October 1, 2012 36a-494(a)(1)
14621462 Sec. 10 October 1, 2012 36a-498a(a)
14631463 Sec. 11 October 1, 2012 36a-534b(c)(3)
14641464 Sec. 12 October 1, 2012 36a-534c
14651465
14661466 This act shall take effect as follows and shall amend the following sections:
14671467
14681468 Section 1
14691469
14701470 October 1, 2012
14711471
14721472 36a-3
14731473
14741474 Sec. 2
14751475
14761476 October 1, 2012
14771477
14781478 36a-485
14791479
14801480 Sec. 3
14811481
14821482 October 1, 2012
14831483
14841484 36a-486
14851485
14861486 Sec. 4
14871487
14881488 October 1, 2012
14891489
14901490 36a-487(b)
14911491
14921492 Sec. 5
14931493
14941494 October 1, 2012
14951495
14961496 36a-488(a)(1)
14971497
14981498 Sec. 6
14991499
15001500 October 1, 2012
15011501
15021502 36a-489(a)
15031503
15041504 Sec. 7
15051505
15061506 October 1, 2012
15071507
15081508 36a-489(b)(1)
15091509
15101510 Sec. 8
15111511
15121512 October 1, 2012
15131513
15141514 36a-489a
15151515
15161516 Sec. 9
15171517
15181518 October 1, 2012
15191519
15201520 36a-494(a)(1)
15211521
15221522 Sec. 10
15231523
15241524 October 1, 2012
15251525
15261526 36a-498a(a)
15271527
15281528 Sec. 11
15291529
15301530 October 1, 2012
15311531
15321532 36a-534b(c)(3)
15331533
15341534 Sec. 12
15351535
15361536 October 1, 2012
15371537
15381538 36a-534c
15391539
15401540 Statement of Purpose:
15411541
15421542 To implement certain rule comments and clarifications emerging from the Department of Housing and Urban Development's final rule issued on June 30, 2011, entitled "SAFE Mortgage Licensing Act: Minimum Licensing Standards and Oversight Responsibilities", 76 Federal Register 38464, and to make various corresponding and technical changes.
15431543
15441544 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]