Bill Summary: SB 906 (PA 17-38) - Lead Generators of Residential Mortgage Loans

• Establishes new licensing requirement for "lead generators" (persons who sell, generate, or direct consumers to mortgage loan providers) effective January 1, 2018, with exemptions for banks, credit unions, licensed mortgage lenders/brokers, and consumer reporting agencies.

• Requires licensed lead generators to display disclaimer statement in all advertisements stating they are "LEAD GENERATOR ONLY" and that information will be shared with third parties; prohibits lead generators from accepting advance fees or improperly using consumer information.

• Imposes strict regulations on lead generator outreach activities including prohibitions on: unapproved robocalls, calls outside 8 a.m. to 9 p.m., misleading subject lines in emails, and soliciting consumers on Do Not Call lists.

• Lead generators cannot collect Social Security numbers or bank account numbers, cannot use trigger leads to contact consumers who opted out of credit offers, and must allow consumers to opt out of future solicitations within 10 business days.

• Adds lead generator license violations to unfair or deceptive practice standards; updates definitions and licensing procedures throughout Connecticut's residential mortgage lending laws to align with federal SAFE Mortgage Licensing Act requirements.