CT SB01257

Requires surety bond cancellation notices for mortgage lenders, small loan licensees, debt negotiators, consumer collection agencies, and mortgage servicers to be provided through the Nationwide Multistate Licensing System at least 30 days prior to cancellation, eliminating the certified mail option

Creates a new registration requirement for mortgage lenders acting as exempt mortgage servicers, with registrations expiring December 31st annually and requiring supplemental surety bonds, fidelity bonds, and errors and omissions coverage

Establishes disclosure requirements for shared appreciation agreements (home equity sharing products), mandating lenders provide borrowers with detailed repayment scenarios, financial calculations, and warnings within 3 business days of application

Strengthens private student loan cosigner release protections effective October 1, 2025, prohibiting lenders from requiring more than 12 consecutive on-time payments for eligibility and mandating release of cosigners with total and permanent disabilities

Grants the Banking Commissioner authority to suspend, revoke, or refuse to renew registrations for commercial financing providers and private education lenders/creditors, with registration fees set at $1,000 for providers and $900 for education lenders