CT SB00130

Requires residential mortgage lenders licensed under Connecticut General Statutes Chapter 668 to wire loan proceeds to the mortgagee's attorney's bank by the scheduled closing date and time, or by the disbursement date for refinances where the right of rescission has terminated.

Applies to secondary mortgage loans only when financing the acquisition or initial construction of the mortgagor's principal dwelling.

Authorizes the Banking Commissioner to suspend, revoke, or refuse to renew licenses for lenders that fail to comply with wire transfer timing requirements.

Effective October 1, 2014.

Addresses concerns about closing delays, settlement fund scheduling difficulties, and potential ethical violations when attorneys must hold commingled client funds in escrow.