Researcher: KLM Page 1 3/25/25
OLR Bill Analysis
HB 5503
AN ACT REQUIRING MORTGAGEES TO PROVIDE MORTGAGORS
WITH PERIODIC STATEMENTS.
SUMMARY
This bill requires certain mortgagees (lenders) to give periodic
statements to the borrowers (mortgagors) on loans secured by
mortgages encumbering real property they also own. The requirement
applies to an owner or servicer of debt secured by a mortgage that
makes more than five mortgage loans in any consecutive 12-month
period but only if the borrower asks for the statement.
For purposes of the bill, a “periodic statement” is a statement that a
lender gives to a borrower for each billing cycle of a mortgage that meets
the federal requirements for residential mortgage loan statements under
the Truth in Lending Act implementing regulations (Regulation Z; 12
C.F.R. § 1026.41). Regulation Z sets requirements generally for the
following aspects of statements:
1. timing (i.e. delivered or mailed within a reasonably prompt time
after the due date or courtesy period for the previous billing
cycle);
2. form (i.e. clear, conspicuous, in a form the consumer may keep,
and in writing or electronically if the consumer agrees); and
3. content and layout (i.e. amount due with an explanation; past
payment breakdown; transaction activity; and partial payment,
contact, account, and delinquency information).
Under the bill, lenders that comply with this regulation are deemed
compliant with the bill’s requirements.
EFFECTIVE DATE: October 1, 2025 2025HB-05503-R000225-BA.DOCX
Researcher: KLM Page 2 3/25/25
COMMITTEE ACTION
Banking Committee
Joint Favorable
Yea 13 Nay 0 (03/11/2025)