Connecticut Senate Bill SB00396

Connecticut 2014 Regular Session

• Introduced: 3/5/14
• Refer: 3/5/14

Caption

An Act Requiring Mortgagees To Notify Consumer Reporting Agencies Of The Good Standing Of A Mortgagor.

Impact

The implementation of this bill is expected to impact state laws governing mortgage reporting and consumer credit. By enforcing the requirement for mortgagees to communicate positive payment histories, SB00396 seeks to provide consumers who have undergone foreclosure processes a fair chance to rebuild their credit. This initiative could lead to a more equitable lending landscape, potentially allowing former borrowers to access better financial products in the future.

Summary

SB00396 proposes a requirement for mortgagees to notify consumer reporting agencies about the good standing of a mortgagor, specifically when a mortgagor has successfully completed a foreclosure mediation program and has remained current on mortgage payments for at least three years. This bill aims to enhance the reliability of credit reporting related to mortgage accounts, benefiting borrowers by ensuring their positive payment history is recognized in their credit profiles.

Contention

Notable points of contention around this bill may include discussions about the responsibilities of mortgagees and the implications for their operations. Critics may argue that requiring mortgagees to report good standing could impose an additional administrative burden on lenders. Furthermore, there may be concerns about how broadly the definition of 'good standing' is applied, particularly in light of differing borrower circumstances. Supporters of the bill, however, advocate that it is a necessary step toward consumer protection and improved credit outcomes.