CT SB00404

Clarifies that money transmission occurs in Connecticut if a person has a place of business located within the state, receives or transmits money from/to someone in the state, issues or sells stored value or payment instruments in the state.

Requires mortgage servicers to deposit escrow funds received from mortgagors into separate trust accounts at federally insured banks or credit unions and prohibits commingling with servicer funds.

Mandates monthly reconciliation of escrow trust accounts with records maintained per generally accepted accounting principles for at least two years.

Requires mortgage servicers to use escrow accounts solely for depositing mortgagor funds and paying taxes and insurance premiums, and to reimburse mortgagors for any bank or credit union fees within thirty days.

Obligates mortgage servicers to pay taxes and insurance premiums from their own funds if insufficient escrow exists despite mortgagor compliance, and prohibits charging interest on payment shortages extended over one-year payment plans.