CT HB05355

Repeals and replaces Section 36a-716 of the general statutes, effective October 1, 2011, to regulate mortgage servicing companies' handling of escrow accounts for taxes and insurance premiums.

Requires mortgage servicing companies to notify mortgagors of required escrow account payments and to pay taxes and insurance premiums on time if the mortgagor has paid required amounts and bills were received at least 15 days prior to the due date.

Limits reserve funds that mortgage servicing companies may require mortgagors to maintain in escrow accounts to no more than one month's worth of combined taxes and insurance premiums.

Requires mortgage servicing companies to cover any escrow shortfalls from their own funds and permits mortgagors to pay back shortages over a period of not less than one year without interest charges.