CT HB05090

Connecticut banks and credit unions must include mortgage forbearance provisions in all residential mortgage loans issued on or after October 1, 2021

Forbearance is available to mortgagors who have a participation agreement with the state captive insurance company for concrete foundation repairs caused by pyrrhotite deterioration and are required to vacate the dwelling during repairs

Forbearance begins when the mortgagor vacates the dwelling and ends when the municipal building inspector issues a certificate of completion or occupancy, or 120 days after commencement, whichever is earlier

Forbearance suspends all periodic payments including principal, interest, taxes, assessments, mortgage insurance, and hazard insurance premiums

Financial institutions may voluntarily provide forbearance to mortgagors with pre-October 1, 2021 loans whose dwellings require repairs for pyrrhotite-damaged concrete foundations