CT SB00360

Modifies foreclosure notice and mediation requirements for mortgages, requiring mortgagees to provide 60-day notice to mortgagors before commencing foreclosure and allowing mortgagors to pursue loan restructuring or emergency mortgage assistance applications during this period.

Removes restriction on Federal Housing Administration-insured mortgages from emergency mortgage assistance eligibility and removes prohibition on mortgagors receiving assistance from filing defenses in foreclosure actions.

Expands asset disclosure requirements to include condominium fees, assessments and charges, and allows consideration of mortgagor's length of residency when evaluating mortgage credit history for assistance eligibility.

Extends emergency mortgage assistance payment period from existing timeframe to 60 months maximum, with payments capped at 28 percent of 140 percent of annual area median income divided by 12.

Authorizes $60 million in state bonds effective July 1, 2012, for grants to Connecticut Housing Finance Authority to fund emergency mortgage assistance program.

Requires mortgagees and municipalities to include judicial branch-promulgated form with foreclosure notices and tax/utility statements directing mortgagors to HUD-approved housing counselors and Department of Banking assistance hotline, effective October 1, 2012.