Connecticut Senate Bill SB00410

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16

Caption

An Act Repealing The Mortgagor In Good Standing Statute.

Impact

The repeal of this statute is expected to impact the relationship between mortgagees and mortgagors significantly. By a removal of the requirement to issue a certificate of good standing, mortgagees may gain more discretion in managing their records and communications with mortgagors. This could lead to a more streamlined process for individuals and institutions involved in mortgage lending and foreclosure situations. The bill encourages mortgagees to evaluate their ongoing relationships with borrowers without formal certification of good standing, which may reduce administrative burdens.

Summary

SB00410 is a legislative act aimed at repealing the Mortgagor in Good Standing Statute. Under the current law, mortgagees are required to provide mortgagors with a certificate of good standing upon request, given that the mortgagor has completed a foreclosure mediation program and maintained their payment obligations for three years following this completion. The intention behind this bill is to eliminate this requirement, simplifying the obligations for mortgagees and potentially changing the reporting process concerning mortgators' standing after mediation.

Contention

Notable points of contention surrounding SB00410 may include concerns from consumer advocacy groups or mortgagors who believe that eliminating the requirement for a good standing certificate might lead to adverse consequences for borrowers. Critics may argue that this repeal could undermine mortgagors' security and recognition of their compliance in maintaining good standing after going through foreclosure mediation. The discussion may encompass fears regarding transparency and due process, especially for individuals who have worked diligently to uphold their mortgage commitments post-mediation.