Connecticut House Bill HB05049

Connecticut 2020 Regular Session

• Introduced: 2/11/20
• Refer: 2/11/20

Caption

An Act Implementing The Recommendations Of The Department Of Banking.

Impact

The bill's implementation significantly alters existing statutes regarding the conduct of mortgage and loan servicing activities, reinforcing the requirement for licensing and establishing clear guidelines for 'change of control' within licensed entities. By tightening these regulations, the bill intends to close loopholes that allowed for potentially deceptive practices in the student loan servicing and mortgage lending industries. This change aims to safeguard consumers from fraudulent activities while ensuring that financial institutions operate transparently and responsibly.

Summary

House Bill 5049 aims to implement the recommendations made by the Department of Banking concerning various financial regulations. This bill addresses issues related to licensing requirements for mortgage professionals, including mortgage lenders, brokers, and servicers, as well as establishes stricter compliance measures to enhance consumer protections in financial transactions. It proposes to repeal and amend several sections of the general statutes to improve the overall regulation of financial businesses operating within the state.

Contention

Notable points of contention regarding HB 5049 include concerns raised by various stakeholders about the balance between increased regulation and the operational burden placed on financial institutions. Some industry representatives argue that the stringent requirements may hinder their ability to serve consumers efficiently, while consumer advocacy groups assert that these regulations are essential for protecting borrowers from predatory practices. Overall, discussions have pointed towards the ongoing tension between regulation and the freedom of financial service providers to operate without excessive oversight.