Senate Bill 1217

To (1) insert the definition of "prepayment penalty" from section 36a-746a of the general statutes into section 36a-2 of the general statutes; (2) apply the same prepayment penalties limitation currently in high cost mortgages to all mortgages in the state whereby prepayment penalties cannot exceed three per cent of the principal paid off during the first year, two per cent during the second year and one per cent during the third year. Unscrupulous lenders are avoiding the high cost loan limitation on prepayment penalties by restructuring the mortgage to avoid the definition of high cost loan; (3) prohibit prepayment penalties when the mortgagee is refinancing a mortgage with the same lender or affiliate of such lender; (4) require that all refinancing of existing mortgages have some benefit to the borrower applying the current language in the high cost mortgage statute, section 36a-746e(8) of the general statutes; (5) require the borrower's written consent to change the payment due date on a mortgage loan; and (6) require lenders whose loans are subject to the Truth in Lending Act to notify the borrower that they may wish to contact a housing counselor to determine whether to cancel the loan within the three-day rescission period. The notice refers the borrower to the United States Department of Housing and Urban Development for further information.

In the Senate

• BA

  Sponsor

l9n doesn't hold this bill's text yet.

In the Senate Mar 2 – Mar 3

1. Mar 2Introduced and sent to Banking Committee
2. Mar 3Heard in Banking Committee
3. Heard in Banking Committee