Connecticut House Bill HB05214

Connecticut 2021 Regular Session

• Introduced: 1/22/21
• Refer: 1/22/21

Caption

An Act Requiring Mortgage Lenders And Mortgage Servicers To Accept And Apply Partial Mortgage Payments.

Impact

If enacted, HB 05214 would significantly alter the operational practices of mortgage lenders and servicers in the state. This legislative change would ensure that partial payments are recognized, allowing borrowers facing financial difficulties to remain in good standing on their loans. It addresses a critical aspect of home financing where borrowers often find themselves in precarious situations due to unexpected circumstances, ensuring that they are not penalized for being unable to meet full payment obligations during tough economic moments.

Summary

House Bill 05214 aims to amend Title 36a of the General Statutes to mandate that mortgage lenders and mortgage servicers accept and apply partial mortgage payments made by mortgagors. The main objective of this bill is to provide financial relief for homeowners who may be unable to make full mortgage payments, especially in situations of economic hardship. By requiring lenders to accept partial payments, the bill seeks to prevent foreclosure and support families in maintaining homeownership even during challenging financial times.

Contention

Discussions surrounding HB 05214 may reveal points of contention, particularly regarding the potential financial implications for lenders and the mortgage industry. Critics may argue that requiring lenders to accept partial payments could lead to increased risk for mortgage servicers and create an administrative burden. There may be concerns about how this bill could affect overall lending practices and the availability of credit, as lenders might adjust their criteria in response to potential risks introduced by the requirement to accept partial payments.