Connecticut Senate Bill SB00394

Connecticut 2018 Regular Session

• Introduced: 3/1/18
• Refer: 3/1/18

Caption

An Act Allowing Connecticut Credit Unions To Make Certain Residential Mortgages.

Impact

By allowing credit unions to offer certain residential mortgages, SB00394 may significantly affect the landscape of residential borrowing in Connecticut. This will potentially increase the number of financial institutions available to consumers for mortgage financing, likely resulting in more favorable loan terms and conditions. The likelihood of increased competition could lead to lower interest rates and better mortgage options, benefiting consumers who are looking for affordable residential loans.

Summary

SB00394, titled 'An Act Allowing Connecticut Credit Unions To Make Certain Residential Mortgages,' seeks to amend current statutes to expand the mortgage-lending capabilities of Connecticut credit unions. The proposed legislation permits credit unions to issue various types of mortgage loans secured by residential properties, which include primary, secondary, or vacation residences. This measure aims to enhance access to financial services for members of credit unions, fostering a more competitive lending environment in the state.

Contention

While the bill generally aims to improve financial access for residents, it may have raised some points of contention related to the regulatory framework governing credit unions. Some stakeholders may express concerns regarding the risk management practices of credit unions as they expand their lending activities. Potential opposition could arise from traditional banks, which may argue that such changes could compromise sound lending practices, placing both lenders and borrowers in precarious financial situations.