HB 6493 Summary

• Creates an emergency mortgage assistance loan program administered by the Connecticut Housing Finance Authority to provide loans to homeowners facing foreclosure due to financial hardship beyond their control.

• Requires lienholders to provide 60-day notice to homeowners before foreclosing (effective October 1, 2021) and prohibits foreclosure judgments during the application review period or if homeowner meets with lienholder or credit counseling agency.

• Eligible financial institutions can make second mortgage loans to qualified homeowners, with the state guaranteeing repayment up to $5 million in total claims; loans accrue interest at rates determined by the State Treasurer.

• Establishes specific eligibility criteria including principal residence requirement, financial hardship determination, favorable mortgage credit history for the past two years, and insufficient income to correct delinquency without assistance.

• Limits total loan guarantees to $50 million in loans issued and $5 million in claims paid; requires financial institutions to notify the authority within one business day of making a loan and allows institutions to suspend or withdraw participation with five business days' notice.