CT HB07032

Adds withholding of interest payments as a potential sanction that courts may impose on mortgagees that fail to comply with foreclosure mediation requirements under Connecticut General Statutes Section 49-31n(b)(2).

Allows courts to withhold interest payments due and owing from a mortgagor as a disciplinary measure against mortgagees that engage in intentional or pattern misconduct during mediation proceedings contrary to program objectives.

Maintains existing available sanctions including terminating mediation, requiring in-person mediation, forbidding attorney's fee charges, awarding attorney's fees, and imposing fines, with heightened sanctions for egregious misconduct.

Takes effect October 1, 2015.

Stated purpose is to provide an incentive for mortgagees to demonstrate good faith participation in foreclosure mediation programs.