CT HB05423

Mortgagees must provide payoff statements or reinstatement payment statements in writing within seven business days of a written request.

If a mortgagee fails to provide the statement by the requested date, it forfeits the right to collect interest accruing after the expiration of that date.

Mortgagees cannot charge a fee for the first payoff or reinstatement statement requested within a calendar year, except for expedited delivery requests where the borrower agrees to pay a fee.

Mortgages issued by Connecticut banks or credit unions on or after October 1, 2020, shall be reinstated when the mortgagor pays the total amount due on the reinstatement statement by its expiration date, and the mortgagee must waive any default-related costs, expenses, or attorney fees not included on the statement.

The act takes effect on October 1, 2020, and amends Connecticut General Statutes Section 49-10a.