CT SB00406

Amends Section 36a-719h of the general statutes to revise prohibitions on mortgage servicer conduct, effective October 1, 2016.

Changes language in subsections (4) and (5) from "Knowingly misapply or recklessly apply" to "Apply recklessly or knowingly misapply" payments to loan balances and escrow accounts.

Modifies subsection (6) to replace "has reason to know" with "should have known" regarding forced placement of hazard, homeowners, or flood insurance.

Alters subsection (8) to change "thereby harming a mortgagor's creditworthiness" to "that results in harm to a mortgagor's creditworthiness" for inaccurate credit bureau reporting.

Maintains all 19 existing prohibitions on unfair practices by mortgage servicers, including fraud, misrepresentation, improper fee collection, and failure to communicate with authorized representatives.