CT HB05217

Revises emergency mortgage and lien assistance repayment agreements to defer payments when total housing expenses exceed 35 percent of the homeowner's aggregate family income, effective October 1, 2022.

Requires monthly repayment to the authority equal to or exceeding the mortgage or lien payment amount if assistance is not fully repaid by the time the mortgage is paid off.

Establishes that interest accrues on emergency mortgage and lien assistance payments at a rate based on the state's cost of funds, as determined by the State Treasurer in consultation with the authority.

Permits the authority to issue loans to borrowers with debt-to-income ratios equal to the highest ratio allowed by the Federal Housing Administration, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation, and to consider nontraditional credit references.

Clarifies that when an assignee provides written notice regarding a security interest, it may use the last recorded security interest holder's information unless that holder is the plaintiff in a pending Superior Court enforcement action, in which case notice goes to the plaintiff's attorney.