Connecticut Senate Bill SB00382

Connecticut 2020 Regular Session

• Introduced: 3/3/20
• Refer: 3/3/20

Caption

An Act Concerning Exemptions From Certain Requirements For Persons Acting As Lead Generators And Commercial Mortgage Loan Originators.

Impact

The proposed legislation will directly affect state laws pertaining to mortgage lending and lead generation. By allowing exemptions for more individuals and entities, the bill may simplify operations for banks and credit unions, potentially leading to greater ease in the distribution of commercial loans. However, it modifies existing requirements that ensure some level of oversight, which could raise concerns about protecting consumers from unqualified lead generation practices.

Summary

SB00382 aims to amend certain statutes concerning exemptions from licensure for individuals acting as lead generators and commercial mortgage loan originators. It primarily introduces changes to the definitions and requirements for lead generators, particularly focusing on who qualifies for exemption from licensure. The bill seeks to enable certain financial institutions and their affiliates, as well as licensed mortgage professionals, to operate without needing additional licensure under specific circumstances.

Contention

Notable points of contention surrounding SB00382 involve the balance between facilitating business operations and ensuring consumer protection. Supporters argue that easing licensure requirements will encourage more lead generation activities, boosting business for mortgage originators. Conversely, opponents may voice concerns that reducing regulatory oversight could result in less accountability, creating risks for consumers who rely on financial intermediaries. The debate centers on whether the benefits of increased business efficiency outweigh the potential pitfalls of reduced regulation.