Connecticut Senate Bill SB00406

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16

Caption

An Act Adopting Technical Changes To The Mortgage Servicing Statutes.

Impact

The proposed changes primarily impact the relationship between mortgage servicers and mortgagors, establishing stricter standards for servicer conduct. Key provisions include prohibiting deceptive practices, mandating accurate reporting to credit bureaus, and requiring fair treatment regarding insurance policies placed on properties. By enhancing these protections, the bill aims to address longstanding consumer concerns regarding mismanagement and lack of transparency in mortgage servicing, potentially leading to greater accountability among servicers.

Summary

SB00406 is a bill focused on adopting technical changes to the mortgage servicing statutes. It aims to amend existing regulations governing the behavior of mortgage servicers in Connecticut. By repealing and substituting specific sections of the statutes, the bill seeks to enhance consumer protections for mortgagors, helping to ensure that they are not subjected to unfair or deceptive practices. The emphasis is placed on the servicers' obligations to act transparently and responsibly in their dealings with customers.

Contention

While the bill is generally positioned as a consumer-friendly measure aimed at enhancing protections for homeowners, there may be contention regarding the enforcement of these regulations and the implications for servicers. Opponents may argue that overly stringent regulations could complicate operations for servicers, possibly leading to increased costs that could be passed on to consumers. A balance needs to be struck between protecting mortgagors' rights and maintaining a viable operating environment for mortgage servicers.