HB 5353 Summary

• Establishes licensing requirements for mortgage servicers effective January 1, 2015, requiring applicants to obtain licenses through the Nationwide Mortgage Licensing System and Registry (NMLS) with qualified individuals, surety bonds ($100,000 minimum per office), fidelity bonds, and errors and omissions coverage.

• Expands mortgage servicer obligations to include maintaining detailed loan records, prohibiting unfair practices (misapplication of payments, improper insurance placement, late fees on delinquencies), and requiring compliance with federal mortgage servicing laws and regulations.

• Extends the Connecticut foreclosure mediation program deadline from July 1, 2014 to July 1, 2016, allowing more homeowners with mortgages on residential property to participate in mediation before foreclosure judgments are entered.

• Makes technical updates to mortgage lending definitions and requirements, including changes to "residential mortgage loan" definition and prelicensing education requirements (adding one hour of Connecticut law training).

• Establishes a Commission on Connecticut's Leadership in Corporation and Business Law to develop policies making Connecticut a leading jurisdiction for business entity organization and adjudication.