General Assembly Governor's Bill No. 6355
January Session, 2013 LCO No. 2890
*02890__________*
Referred to Committee on BANKS
Introduced by:
REP. SHARKEY, 88th Dist. REP. ARESIMOWICZ, 30th Dist. SEN. WILLIAMS, 29th Dist. SEN. LOONEY, 11th Dist.
General Assembly
Governor's Bill No. 6355
January Session, 2013
LCO No. 2890
*02890__________*
Referred to Committee on BANKS
Introduced by:
REP. SHARKEY, 88th Dist.
REP. ARESIMOWICZ, 30th Dist.
SEN. WILLIAMS, 29th Dist.
SEN. LOONEY, 11th Dist.
AN ACT CONCERNING HOMEOWNER PROTECTION RIGHTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 49-31k of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
As used in this section and sections 49-31l to 49-31o, inclusive, as amended by this act:
(1) "Mortgagor" means: (A) The owner-occupant of one-to-four family residential real property located in this state who is also the borrower under a mortgage encumbering such residential real property, which is the primary residence of such owner-occupant, or (B) a religious organization that is (i) the owner of real property located in this state, and (ii) the borrower under a mortgage encumbering such real property;
(2) "Residential real property" means a one-to-four family dwelling, [occupied as a residence by] one unit of which is the principal residence of a mortgagor;
(3) "Mortgagee" means the [original lender or servicer under a mortgage, or its successors or assigns, who is the holder of any mortgage] owner of the debt secured by a mortgage on residential real property or real property owned by a religious organization securing a loan made primarily for personal, family, religious or household purposes that is the subject of a foreclosure action or, if such owner has completely delegated full settlement authority to another party, such fully authorized party, or the trustee, executor or other court-appointed representative for such fully authorized party;
(4) "Authority" means the Connecticut Housing Finance Authority created under section 8-244;
(5) "Mortgage assistance programs" means the mortgage assistance programs developed and implemented by the authority in accordance with sections 8-265cc to 8-265kk, inclusive, 8-265rr and 8-265ss; [and]
(6) "Religious organization" means an organization that meets the religious purposes test of Section 501(c)(3) of the Internal Revenue Code of 1986;
(7) "Full settlement authority" (A) means possessing the immediate ability to participate in foreclosure mediation and meet or accept another party's demand or offer during a foreclosure mediation session, within the mediation period established pursuant to section 49-31n, as amended by this act, without requiring the approval of any other person, as defined in section 49-8a, provided such demand or offer is in the best interests of the party receiving such demand or offer and (i) such party is given a reasonable time to review such demand or offer with such party's spouse, and (ii) the mortgagor is given a reasonable time following the mediation session to review an offer made at or shortly prior to such mediation session with a counseling agency approved by the authority or with an attorney, but (B) does not include settlement authority provided on a preestablished basis; and
(8) "FDIC" means the Federal Deposit Insurance Corporation.
Sec. 2. Subdivisions (6) and (7) of subsection (c) of section 49-31l of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):
(6) Notwithstanding any provision of the general statutes or any rule of law, [prior to July 1, 2014, (A) for the period of time which shall not exceed eight months from the return date,] (A) no mortgagee or mortgagor shall make any motion, request or demand with respect to the other, except those motions, requests or demands that relate to the mediation program described in section 49-31m, as amended by this act, and the mediation sessions held pursuant to such program, provided (i) a mortgagor seeking to contest the court's jurisdiction may file a motion to dismiss and the mortgagee may object to such motion to dismiss in accordance with applicable law and the rules of the courts, and (ii) if the mortgagor elects to make any other motion, request or demand with respect to the mortgagee, [the eight-month limit] except an answer, special defense or counterclaim, which shall not be treated as a motion, request or demand, the restriction on making a motion, request or demand shall no longer apply to either party; and (B) no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action subject to the provisions of this subsection and instituted by the mortgagee to foreclose a mortgage on residential real property or real property owned by a religious organization unless: (i) The mediation period set forth in subsection (c) of section 49-31n, as amended by this act, has expired or has otherwise terminated, whichever is earlier, and [, if fewer than eight months has elapsed from the return date at the time of termination,] fifteen days have elapsed since such termination, or (ii) the mediation program is not otherwise required or available. Nothing in this subdivision shall affect any motion made or any default or judgment entered on or before June 30, 2011.
(7) With respect to foreclosure actions with a return date on or after July 1, 2011, notwithstanding any provision of the general statutes or any rule of law to the contrary, the mortgagee shall be permitted [, on or before July 1, 2014, and] following the [eight-month or] fifteen-day period described in subdivision (6) of this subsection, to simultaneously file, as applicable, (A) a motion for default, and (B) a motion for judgment of strict foreclosure or a motion for judgment of foreclosure by sale with respect to the mortgagor in the foreclosure action.
Sec. 3. Section 49-31m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
The Chief Court Administrator shall establish in each judicial district a foreclosure mediation program in actions to foreclose mortgages on residential real property or real property owned by a religious organization. Such foreclosure mediation shall (1) address all issues of foreclosure, including, but not limited to, reinstatement of the mortgage, disposition of the property through means other than the foreclosure process, including short sales and deeds in lieu of foreclosure, assignment of law days, assignment of sale date, restructuring of the mortgage debt and foreclosure by decree of sale, and (2) be conducted by foreclosure mediators who (A) are employed by the Judicial Branch, (B) are trained in mediation and all relevant aspects of the law, as determined by the Chief Court Administrator, (C) have knowledge of the community-based resources that are available in the judicial district in which they serve, and (D) have knowledge of the mortgage assistance programs. Such mediators may refer mortgagors who participate in the foreclosure mediation program to community-based resources when appropriate and to the mortgage assistance programs.
Sec. 4. Section 49-31n of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) Prior to July 1, 2014: (1) Any action for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, shall be subject to the provisions of subsection (b) of this section, and (2) any action for the foreclosure of a mortgage on (A) residential real property with a return date during the period from July 1, 2009, to June 30, 2014, inclusive, or (B) real property owned by a religious organization with a return date during the period from October 1, 2011, to June 30, 2014, inclusive, shall be subject to the provisions of subsection (c) of this section.
(b) (1) For any action for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, the mediation period under the foreclosure mediation program established in section 49-31m, as amended by this act, shall commence when the court sends notice to each appearing party that a foreclosure mediation request form has been submitted by a mortgagor to the court, which notice shall be sent not later than three business days after the court receives a completed foreclosure mediation request form. The mediation period shall conclude not more than sixty days after the return date for the foreclosure action, except that the court may, in its discretion, for good cause shown, (A) extend [, by not more than thirty days,] or shorten the mediation period on its own motion or upon motion of any party, or (B) extend [by not more than thirty days] the mediation period upon written request of the mediator. If the mediation period extends beyond six months after the return date, the court shall make particularized findings on the record for granting such an extension.
(2) The first mediation session shall be held not later than fifteen business days after the court sends notice to all parties that a foreclosure mediation request form has been submitted to the court. The mortgagor and mortgagee shall appear in person at each mediation session and shall have [authority to agree to a proposed] full settlement authority, except that (A) if [the mortgagee] a party is represented by counsel, the [mortgagee's] party's counsel may appear in lieu of the [mortgagee] party to represent the [mortgagee's] party's interests at the mediation, provided [such counsel has the authority to agree to a proposed settlement] the party has full settlement authority, the mortgagor attends the first mediation session in person, and the [mortgagee] party is available (i) during the mediation session by telephone, and (ii) to participate in the mediation session by speakerphone, provided an opportunity is afforded for confidential discussions between the [mortgagee and mortgagee's] party and party's counsel, [and] (B) following the initial mediation session, if there are two or more mortgagors, only one mortgagor shall be required to appear in person at each subsequent mediation session unless good cause is shown, provided the other mortgagors are available (i) during the mediation session, and (ii) to participate in the mediation session by speakerphone, [provided an opportunity is afforded for confidential discussions among the mortgagors and such mortgagors' counsel. The] and (C) if a party suffers from a disability or other significant hardship that imposes an undue burden on such party to appear in person, the mediator may grant permission to such party to participate in the mediation session by telephone. A mortgagor's spouse, who is not a mortgagor but who lives in the subject property, may appear at each mediation session, provided all appearing mortgagors consent to such spouse's appearance or such spouse shows good cause for his or her appearance. Following each mediation session, the mediator shall file with the court a report indicating the extent to which the parties complied with the requirements set forth in this subdivision, including whether the mortgagor submitted a reasonably complete package of financial documentation to the mortgagee and whether the mediator recommends that sanctions be imposed on any party due to such party's conduct in any mediation session. If a mediator determines that a mortgagor has submitted a reasonably complete package of financial documentation to the mortgagee, such mortgagee shall use such information to evaluate the mortgagor and treat such information as current under all applicable rules. The court may impose sanctions on any party while the case is pending, except the court shall not award attorney's fees to any mortgagee for time spent in any mediation session if the court finds that such mortgagee has failed to comply with this subdivision, unless the court finds reasonable cause for such failure.
(3) Not later than two days after the conclusion of the first mediation session, the mediator shall determine whether the parties will benefit from further mediation. The mediator shall file with the court a report setting forth such determination and mail a copy of such report to each appearing party. If the mediator reports to the court that the parties will not benefit from further mediation, the mediation period shall terminate automatically. If the mediator reports to the court after the first mediation session that the parties may benefit from further mediation, the mediation period shall continue.
(4) If the mediator has submitted a report to the court that the parties may benefit from further mediation pursuant to subdivision (3) of this subsection, not more than two days after the conclusion of the mediation, but not later than the termination of the mediation period set forth in subdivision (1) of this subsection, the mediator shall file a report with the court describing the proceedings and specifying the issues resolved, if any, and any issues not resolved pursuant to the mediation. The filing of the report shall terminate the mediation period automatically. If certain issues have not been resolved pursuant to the mediation, the mediator may refer the mortgagor to any appropriate community-based services that are available in the judicial district, but any such referral shall not cause a delay in the mediation process.
(5) The Chief Court Administrator shall establish policies and procedures to implement this subsection. Such policies and procedures shall, at a minimum, provide that the mediator shall advise the mortgagor at the first mediation session required by subdivision (2) of this subsection that [: (A) Such mediation does not suspend the mortgagor's obligation to respond to the foreclosure action; and (B)] a judgment of strict foreclosure or foreclosure by sale may cause the mortgagor to lose the residential real property to foreclosure.
(6) In no event shall any determination issued by a mediator under this program form the basis of an appeal of any foreclosure judgment.
(7) Foreclosure mediation request forms shall not be accepted by the court under this subsection on or after July 1, 2012, and the foreclosure mediation program shall terminate when all mediation has concluded with respect to any applications submitted to the court prior to July 1, 2014.
(8) At any time during the mediation period, the mediator may refer a mortgagor who is the owner-occupant of one-to-four family residential real property to the mortgage assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to judgment when the conditions specified in subdivision (6) of subsection (b) of section 49-31l have been satisfied.
(9) Parties and their counsel shall mediate all issues in good faith. "Good faith" includes, but is not limited to, (A) complying with the requirements of (i) any applicable guidance or rule issued by the federal government and its agencies or a government-sponsored enterprise, or (ii) arising out of a mortgage-related settlement to which the Attorney General, Department of Banking or Department of Consumer Protection is a party, and producing documentation of such compliance, (B) providing, in writing, the reasons for and details of any denial of an application for available foreclosure workout programs, (C) providing reasonable advance notice to the opposing party if additional documentation or time is needed for a party to be prepared for an upcoming mediation session, and (D) filing accurate loss mitigation affidavits with the court. If any party or attorney fails to mediate in good faith, the court may impose sanctions on such party or attorney. Failing to mediate in good faith shall include (i) failing to comply with the general statutes governing foreclosure mediation or any court rule or order, (ii) unreasonably requesting additional or updated documentation following a determination that a mortgagor's package was reasonably complete in accordance with subdivision (2) of this subsection, or (iii) otherwise engaging in conduct incompatible with an efficient and expeditious process without good cause. Demonstrating that a party or attorney failed to mediate in good faith does not require a showing that such party or attorney acted with malice, intent to injure or an otherwise affirmative showing of bad faith. Available sanctions shall include, but not be limited to, imposing fines payable to the court or aggrieved party, dismissing the foreclosure action, barring interest accrual with regard to the underlying loan, awarding attorney's fees, compensation for lost income and expenses arising out of a failure to mediate in good faith, and forbidding the mortgagee from charging the mortgagor for the mortgagee's attorney's fees. Nothing in section 49-31l, as amended by this act, or this section shall prevent a court from imposing the sanctions contemplated in this subdivision.
(10) If the third mediation session concludes without resolution of the action and with a request for a subsequent mediation session, the court shall conduct a hearing following such third mediation session and each subsequent mediation session as to the status of the case and the reasons for which a resolution has not yet been achieved, except no such hearing shall be held if, through a motion by a mediator or a party to the mediation, good cause is shown for postponing such hearing until the conclusion of the subsequent mediation session.
(c) (1) For any action for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2009, to June 30, 2014, inclusive, or for any action for the foreclosure of a mortgage on real property owned by a religious organization with a return date during the period from October 1, 2011, to June 30, 2014, inclusive, the mediation period under the foreclosure mediation program established in section 49-31m, as amended by this act, shall commence when the court sends notice to each appearing party scheduling the first foreclosure mediation session. The mediation period shall conclude not later than the date sixty days after the return date for the foreclosure action, except that the court may, in its discretion, for good cause shown, (A) extend [, by not more than thirty days,] or shorten the mediation period on its own motion or upon motion of any party, or (B) extend [by not more than thirty days] the mediation period upon written request of the mediator. If the mediation period extends beyond six months after the return date, the court shall make particularized findings on the record for granting such an extension.
(2) The first mediation session shall be held not later than fifteen business days after the court sends notice to each appearing party in accordance with subdivision (4) of subsection (c) of section 49-31l. On and after October 1, 2011, the first mediation session shall be held not later than thirty-five days after the court sends notice to each appearing party in accordance with subdivision (4) of subsection (c) of this section. On and after October 1, 2011, not later than fifteen business days prior to the date of the initial mediation session, the mortgagee shall deliver to the mortgagor (A) an account history written in plain English, as defined in section 42-152, identifying all credits and debits assessed to the loan account in the immediately preceding twelve-month period, and (B) the name, business mailing address, electronic mail address, facsimile number and direct telephone number of an individual able to process requests to refinance or modify the mortgage loan at issue or otherwise take action to avoid foreclosure of the mortgage. Any updates to the information provided pursuant to subparagraph (B) of this subdivision shall be provided reasonably promptly to the mortgagor and such mortgagor's counsel. The mortgagor and mortgagee shall appear in person at each mediation session and shall have [authority to agree to a proposed] full settlement authority, except that (i) if [the mortgagee] a party is represented by counsel, the [mortgagee's] party's counsel may appear in lieu of the [mortgagee] party to represent the [mortgagee's] party's interests at the mediation, provided [such counsel has the authority to agree to a proposed settlement] the party has full settlement authority, the mortgagor attends the first mediation session in person and the [mortgagee] party is available (I) during the mediation session by telephone, and (II) to participate in the mediation session by speakerphone, provided an opportunity is afforded for confidential discussions between the [mortgagee] party and [mortgagee's] party's counsel, [and] (ii) following the initial mediation session, if there are two or more mortgagors who are self-represented, only one mortgagor shall be required to appear in person at each subsequent mediation session unless good cause is shown, provided the other mortgagors are available (I) during the mediation session, and (II) to participate in the mediation session by speakerphone, [provided an opportunity is afforded for confidential discussions among the mortgagors and such mortgagors' counsel. The] and (iii) if a party suffers from a disability or other significant hardship that imposes an undue burden on such party to appear in person, the mediator may grant permission to such party to participate in the mediation session by telephone. A mortgagor's spouse, who is not a mortgagor but who lives in the subject property, may appear at each mediation session, provided all appearing mortgagors consent to such spouse's appearance or such spouse shows good cause for his or her appearance. Following each mediation session, the mediator shall file with the court a report indicating the extent to which the parties complied with the requirements set forth in this subdivision, including whether the mortgagor submitted a reasonably complete package of financial documentation to the mortgagee, whether the parties completed in full the net present value worksheet in the FDIC's loan modification program guide and, if the matter is not settled, the outcomes of the net present value worksheet and whether the mediator recommends sanctions be imposed against any party due to its conduct in any mediation session. If a mediator determines that a mortgagor has submitted a reasonably complete package of financial documentation to the mortgagee, such mortgagee shall use such information to evaluate the mortgagor and treat such information as current under all applicable rules. The court may impose sanctions on any party while the case is pending, except the court shall not award attorney's fees to any mortgagee for time spent in any mediation session if the court finds that such mortgagee has failed to comply with this subdivision, unless the court finds reasonable cause for such failure.
(3) Not later than two days after the conclusion of the first mediation session, the mediator shall determine whether the parties will benefit from further mediation. The mediator shall file with the court a report setting forth such determination and mail a copy of such report to each appearing party. If the mediator reports to the court that the parties will not benefit from further mediation, the mediation period shall terminate automatically. If the mediator reports to the court after the first mediation session that the parties may benefit from further mediation, the mediation period shall continue. Either party's failure to comply with the documentation requirements of this section or section 49-31l, as amended by this act, shall not be grounds for terminating the mediation period before a second mediation session is conducted.
(4) If the mediator has submitted a report to the court that the parties may benefit from further mediation pursuant to subdivision (3) of this subsection, not more than two days after the conclusion of the mediation, but not later than the termination of the mediation period set forth in subdivision (1) of this subsection, the mediator shall file a report with the court describing the proceedings and specifying the issues resolved, if any, and any issues not resolved pursuant to the mediation. The filing of the report shall terminate the mediation period automatically. If certain issues have not been resolved pursuant to the mediation, the mediator may refer the mortgagor to any appropriate community-based services that are available in the judicial district, but any such referral shall not cause a delay in the mediation process.
(5) The Chief Court Administrator shall establish policies and procedures to implement this subsection. Such policies and procedures shall, at a minimum, provide that the mediator shall advise the mortgagor at the first mediation session required by subdivision (2) of this subsection that [: (A) Such mediation does not suspend the mortgagor's obligation to respond to the foreclosure action beyond the limited time frame described in subdivision (6) of subsection (c) of section 49-31l; and (B)] a judgment of strict foreclosure or foreclosure by sale may cause the mortgagor to lose the residential real property or real property owned by a religious organization to foreclosure.
(6) In no event shall any determination issued by a mediator under this program form the basis of an appeal of any foreclosure judgment.
(7) The foreclosure mediation program shall terminate when all mediation has concluded with respect to any foreclosure action with a return date during the period from July 1, 2009, to June 30, 2014, inclusive.
(8) At any time during the mediation period, the mediator may refer a mortgagor who is the owner-occupant of one-to-four family residential real property to the mortgage assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to judgment when the conditions specified in subdivision (6) of subsection (c) of section 49-31l, as amended by this act, have been satisfied.
(9) Parties and their counsel shall mediate all issues in good faith. "Good faith" includes, but is not limited to, (A) complying with the requirements (i) of any applicable guidance or rule issued by the federal government and its agencies or a government-sponsored enterprise, or (ii) arising out of a mortgage-related settlement to which the Attorney General, Department of Banking or Department of Consumer Protection is a party, and producing documentation of such compliance, (B) providing, in writing, the reasons for and details of any denial of an application for available foreclosure workout programs and, to the extent a mortgagor is evaluated for a loan workout connected to home retention, including an evaluation of such workout to the extent feasible using the calculations, assumptions and forms established by the FDIC and published in the FDIC loan modification program guide, (C) providing reasonable advance notice to the opposing party if additional documentation or time is needed for a party to be prepared for an upcoming mediation session, and (D) filing accurate loss mitigation affidavits with the court. If any party or attorney fails to mediate in good faith, the court may impose sanctions on such party or attorney. Failing to mediate in good faith shall include (i) failing to comply with the general statutes governing mediation or any court rule or order, (ii) unreasonably requesting additional or updated documentation following a determination that a mortgagor's package was reasonably complete in accordance with subdivision (2) of this subsection, or (iii) otherwise engaging in conduct incompatible with an efficient and expeditious process without good cause. Demonstrating that a party or attorney failed to mediate in good faith does not require a showing that such party or attorney acted with malice, intent to injure or an otherwise affirmative showing of bad faith. Available sanctions shall include, but not be limited to, imposing fines payable to the court or aggrieved party, dismissing the foreclosure action, barring interest accrual with regard to the underlying loan, awarding attorney's fees, compensation for lost income and expenses arising out of a failure to mediate in good faith, and forbidding the mortgagee from charging the mortgagor for the mortgagee's attorney's fees. Nothing in section 39-31l, as amended by this act, or any other provision of this section shall prevent a court from imposing the sanctions contemplated in this subdivision.
(10) If the third mediation session concludes without resolution of the action and with a request for a subsequent mediation session, the court shall conduct a hearing following such third mediation session and each subsequent mediation session as to the status of the case and the reasons for which a resolution has not yet been achieved, except no such hearing shall be held if, through a motion by a mediator or a party to the mediation, good cause is shown for postponing such hearing until the conclusion of the subsequent mediation session.
Sec. 5. (NEW) (Effective from passage) (a) In a foreclosure action, the mortgagee may, notwithstanding any other law or rule to the contrary, file a motion for judgment of foreclosure simultaneously with a motion for default for failure to appear, if such mortgagee proves, by clear and convincing evidence and the use of a proper affidavit, that the real property that is the subject of the foreclosure action is not occupied by a mortgagee, tenant or other occupant and not less than three of the following conditions exist:
(1) Statements of neighbors, delivery persons or government employees indicating that the property is vacant and abandoned;
(2) Windows or entrances to the property that are boarded up or closed off or multiple window panes that are damaged, broken or unrepaired;
(3) Doors to the property are smashed through, broken off, unhinged or continuously unlocked;
(4) Risk to the health, safety or welfare of the public or any adjoining or adjacent property owners that exists due to acts of vandalism, loitering, criminal conduct or the physical destruction of the property;
(5) An order by municipal authorities declaring the property to be unfit for occupancy and to remain vacant and unoccupied;
(6) The mortgagee secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing; or
(7) A written statement issued by any mortgagor or tenant expressing the clear intent of all occupants to abandon the property.
(b) A foreclosure shall not proceed under the expedited procedures contemplated under subsection (a) of this section if there is on the property (1) an unoccupied building undergoing construction, renovation or rehabilitation that is (A) proceeding diligently toward completion, and (B) in compliance with all applicable ordinances, codes, regulations and statutes, (2) a secure building occupied on a seasonal basis, or (3) a secure building that is the subject of a probate action to quiet title or other ownership dispute.
Sec. 6. (NEW) (Effective from passage) In a foreclosure action, notwithstanding any provision of law, the mortgagor shall be entitled to plead, via special defenses, counterclaim or otherwise and irrespective of whether such pleading relates to the making, validity or enforcement of the subject note and mortgage, (1) any alleged violation of any federal or state lending or servicing law, regulation or rule, (2) any mortgage-related settlement to which the Attorney General, Department of Banking or Department of Consumer Protection is a party, or (3) any other pleading arising out of facts that occurred after the making of the note or mortgage or after any alleged default on the note or mortgage that the mortgagor alleges the court should, in law or in equity, consider.
Sec. 7. Subsection (a) of section 36a-65 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):
(a) The commissioner shall annually, on or after July first for the fiscal year commencing on said July first, collect pro rata based on asset size from each Connecticut bank and each Connecticut credit union an amount sufficient in the commissioner's judgment to meet the expenses of the Department of Banking, including expenses of the foreclosure mediation program established under section 49-31m, as amended by this act, and a reasonable reserve for contingencies, provided the commissioner shall not collect such amount from a newly organized Connecticut credit union until July first following the third full calendar year after issuance by the commissioner of such credit union's certificate of authority. Such assessments and expenses shall not exceed the budget estimates submitted in accordance with section 36a-13. Such assessments may be made more frequently than annually at the discretion of the commissioner. Such assessments for any fiscal year shall be reduced pro rata by the amount of any surplus from the assessments of prior fiscal years, which surplus shall be maintained in accordance with subdivision (4) of subsection (b) of this section. The commissioner may reduce any such assessment collected from a Connecticut bank up to the amount of any assessment for the same fiscal year collected from such bank by another state in which such bank has established a branch, limited branch or mobile branch. The commissioner may reduce any such assessment collected from a Connecticut credit union up to the amount of any assessment for the same fiscal year collected from such credit union by another state in which such credit union has established a branch. Such assessments for any fiscal year shall be a liability of such banks and credit unions as of the assessment date. Except as provided in this subsection, such assessments shall not be prorated for any reason.
Sec. 8. Subsection (g) of section 49-10 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(g) Any assignor of mortgage debt shall report biannually to the Secretary of the Office of Policy and Management regarding every mortgage assignment involving property located in this state. If such an assignment is not recorded in the municipal land records, the assignor shall pay to the State Treasurer for each such assignment a fee of forty dollars. Thirty-six dollars of such fee shall be deposited into the General Fund and credited to the community investment account established pursuant to section 4-66aa. The State Treasurer shall remit four dollars of such fee to the municipality in which the property is located to become part of the general revenue of such municipality and be used to pay for local capital improvement projects, as defined in section 7-536. The report shall contain (1) the name, address, telephone number and electronic mail address of the registrant; (2) a list containing the street address and municipality in which security for such assigned mortgage debt exists; and (3) the date of execution of such assignment. Any person who violates any provision of this subsection shall be subject to a civil penalty of one hundred dollars for each day of such violation. Each failure to report any single assignment shall constitute an independent violation. The Attorney General may institute a civil action in Superior Court to collect such penalty, which shall be payable to the state. Recordation of an assignment of mortgage debt is not sufficient notice of the assignment to the party obliged to pay for purposes of subsection (d) or (e) of this section.
Sec. 9. (NEW) (Effective from passage) (a) The Banking Commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, requiring a bank, as defined in section 36a-2 of the general statutes, to file a regular report with the Department of Banking concerning foreclosures of a mortgage on real property located in this state that is securing debt owned by such bank or that is serviced by such bank, including, but not limited to, (1) the number of such foreclosures involving vacant or abandoned property in comparison to the number of such foreclosures involving occupied property; (2) the number of delinquent mortgage loans held by the bank and the length of time such loans have been delinquent; (3) the ratio of the number of mortgage loans owned by the bank to the number of mortgage loans serviced by such bank; and (4) whether each mortgage loan serviced by the bank is owned by a bank or trust.
(b) Any such report filed by a bank in accordance with subsection (a) of this section shall be treated as a trade secret and therefore exempt from disclosure under the Freedom of Information Act.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage 49-31k
Sec. 2 from passage 49-31l(c)(6) and (7)
Sec. 3 from passage 49-31m
Sec. 4 from passage 49-31n
Sec. 5 from passage New section
Sec. 6 from passage New section
Sec. 7 July 1, 2013 36a-65(a)
Sec. 8 from passage 49-10(g)
Sec. 9 from passage New section
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
49-31k
Sec. 2
from passage
49-31l(c)(6) and (7)
Sec. 3
from passage
49-31m
Sec. 4
from passage
49-31n
Sec. 5
from passage
New section
Sec. 6
from passage
New section
Sec. 7
July 1, 2013
36a-65(a)
Sec. 8
from passage
49-10(g)
Sec. 9
from passage
New section
Statement of Purpose:
To implement the Governor's budget recommendations.
[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.]