Substitute Senate Bill No. 268 - Summary

• Revises definitions in Connecticut banking statutes including "sales finance company," "control," "key individual," and "virtual currency" to modernize regulatory language and expand scope of regulated activities.

• Modifies surety bond requirements for mortgage lenders, brokers, and debt negotiators to be based on residential mortgage loan volume with tiered penal sums ranging from $50,000 to $500,000, replacing fixed amounts.

• Removes geographic distance requirements (one-hundred-mile radius) for mortgage loan originators and qualified individuals, allowing remote supervision through digital means instead of requiring in-person presence.

• Establishes capital and liquidity requirements for covered mortgage servicers including specific standards for net worth, written policies, board oversight, external audits, and risk management programs.

• Creates a working group to examine the Community Reinvestment Act and recommend methods to incentivize banks and credit unions to open branches in underserved communities and offer loans to low and moderate-income borrowers.