CT HB07141

Effective October 1, 2017, authorizes the Banking Commissioner to require financial services licensees to use a statewide licensing system for applications, renewals, and record-keeping; allows electronic bonds and establishes procedures for system-based licensure.

Modifies prelicensing education requirements for mortgage loan originators from 21 hours to 20 hours, reduces Connecticut-specific law requirement from one hour to one hour separately, and adds three-year reactivation rules requiring retesting or refresher education for previously licensed individuals.

Adds compliance obligations for persons subject to lending regulations requiring establishment and enforcement of policies and procedures to prevent fraud, deception, and violations, with specific accountability for qualifying individuals and branch managers who supervise loan processors or underwriters.

Expands prohibited conduct definitions across multiple lending sectors (sales finance, small loans, check cashing, money transmission, debt adjustment, and consumer collection agencies) to include direct and indirect violations and fraud schemes.

Clarifies that control persons are subject to the same prohibitions as licensed entities; modifies definitions of "advertise," "control person," and related terms across lending chapters to ensure consistent application.