HB 5352 - Mortgage Servicers Regulation

• Establishes licensing requirements for mortgage servicers in Connecticut, effective November 1, 2014, requiring applicants to obtain a license from the Banking Commissioner for main and branch offices.

• Requires mortgage servicers to maintain a $100,000 surety bond, file annual reports on servicing activities, and designate qualified individuals with at least 3 years of mortgage servicing experience to supervise operations.

• Prohibits mortgage servicers from engaging in deceptive practices including misapplying payments, placing unnecessary insurance, collecting excessive fees, or misrepresenting loan terms and conditions.

• Expands the definition of "mortgage servicer" to include servicers of residential mortgage loans (not just first mortgages) and those servicing home equity conversion and reverse mortgages, with exemptions for banks, credit unions, and limited servicers.

• Grants the Banking Commissioner authority to conduct investigations, examinations, and enforcement actions against licensees, including suspension, revocation, or refusal to renew licenses for violations.