Connecticut Senate Bill SB00412

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16

Caption

An Act Concerning Lead Generators.

Impact

If enacted, SB00412 will significantly enhance the regulatory oversight of lead generators by the Banking Commissioner, allowing for suspension or revocation of licenses should violations occur. This includes provisions for immediate suspension in cases where consumer protection is at risk. Moreover, the legislation aims to prevent fraudulent practices related to lead generation, ensuring that only licensed individuals can engage in such activities. Overall, it seeks to bolster consumer confidence in the mortgage industry by ensuring ethical conduct and compliance with established laws.

Summary

SB00412, titled 'An Act Concerning Lead Generators', proposes a comprehensive regulatory framework for lead generators involved in residential mortgage transactions. The bill introduces licensing requirements for lead generators, establishing that they must adhere to specific operational standards designed to ensure integrity and transparency in the mortgage industry. Among these requirements is the necessity for lead generators to maintain detailed records of their activities and communications with consumers, as well as comply with disclosure protocols pertaining to their identity and purpose during solicitations.

Contention

Some potential points of contention surrounding this legislation may arise from concerns about the balance between regulatory oversight and market accessibility for legitimate lead generators. Critics might argue that the new licensing and operational regulations could impose burdensome requirements that deter entry into the market or inflate costs. Proponents, however, will likely advocate for the consumer protection benefits and call attention to the need for higher standards in an industry often plagued by unethical practices. As the bill awaits further discussion, stakeholders from various sectors will continue to express their perspectives on its implications.