Connecticut Senate Bill SB00906

Connecticut 2017 Regular Session

• Introduced: 2/23/17
• Refer: 2/23/17
• Report Pass: 3/7/17
• Refer: 3/17/17
• Report Pass: 3/23/17
• Engrossed: 5/17/17
• Report Pass: 5/19/17
• Chaptered: 6/2/17
• Enrolled: 6/5/17
• Passed: 6/9/17

Caption

An Act Concerning Lead Generators Of Residential Mortgage Loans.

Impact

The passage of SB00906 significantly alters the landscape of mortgage lending in the state. It mandates that all participants in the mortgage lending process adhere to a robust regulatory framework aimed at safeguarding consumer interests. This includes requiring background checks and adherence to ethical business practices as determined by the commissioner of the banking department. Consequently, the act is expected to enhance accountability among mortgage representatives, potentially reducing instances of fraud and misrepresentation that have previously plagued the industry.

Summary

SB00906, known as An Act Concerning Lead Generators Of Residential Mortgage Loans, introduces comprehensive regulations aimed at overseeing the operations of lead generators involved in residential mortgage lending. The bill stipulates licensing requirements for various entities participating in mortgage activities, including lead generators, mortgage lenders, and brokers. It emphasizes the necessity for responsible conduct within the mortgage sector and aims to protect consumers from deceptive practices while ensuring that only reputable individuals can operate in this sphere. By strengthening the licensing framework, the bill bolsters consumer trust in mortgage lending processes.

Sentiment

The sentiment surrounding SB00906 appears largely positive among advocates for consumer rights and regulatory accountability, who view the bill as a necessary step toward increased protections in the residential mortgage market. Supporters highlight the benefits of eliminating unscrupulous practices and ensuring that consumers are better informed and protected. Nevertheless, some industry representatives express concerns about the imposition of stringent regulations, fearing that such requirements could hamper business operations and decrease availability of mortgage options for consumers.

Contention

One of the notable points of contention regarding SB00906 involved discussions on the balance between regulatory oversight and the operational freedom of mortgage businesses. Industry stakeholders raised concerns that excessive regulation could lead to operational inefficiencies, complicating the mortgage process for consumers while discouraging smaller brokers and lead generators from maintaining their licenses. The debate underscores a tension between the need for consumer protection and the importance of fostering a competitive and accessible mortgage market.