Bill Text: CT HB05355 | 2011 | General Assembly | Comm Sub
Bill Title: An Act Concerning Mortgage Escrow Payments.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2011-03-02 - Referred to Joint Committee on Banks [HB05355 Detail]
Download: Connecticut-2011-HB05355-Comm_Sub.html
General Assembly |
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January Session, 2011 |
LCO No. 4075 | ||
*04075HB05355BA_* | |||
Referred to Committee on Banks |
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Introduced by: |
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(BA) |
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AN ACT CONCERNING MORTGAGE ESCROW PAYMENTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 36a-716 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
(a) Any mortgage servicing company which receives funds from a mortgagor to be held in escrow for payment of taxes and insurance premiums shall pay the taxes and insurance premiums of the mortgagor to the appropriate taxing authority and insurance company in the amount required and at the time such taxes and insurance premiums are due provided (1) the mortgage servicing company has been provided with the tax or insurance bills at least fifteen days prior to the date such taxes and insurance premiums are due, and (2) the mortgagor has paid to the mortgage servicing company the amounts required to be paid into the escrow account, as determined by the mortgage servicing company, for all amounts scheduled to be paid to the mortgage servicing company prior to the date such taxes and insurance premiums are due.
(b) Each mortgage servicing company shall, through its own effort and expense, determine and notify the mortgagor of the amounts necessary to be paid into the escrow account to assure that sufficient funds will be available for the payment of such taxes and insurance premiums as of the date such payment is due. No mortgage servicing company shall require the mortgagor to pay more than the equivalent of the sum of one month's taxes and insurance premiums to be held by such mortgage servicing company as reserve funds for the purpose of covering any unanticipated disbursements that are required to be made prior to the mortgagor's regularly scheduled payment into the escrow account is available for disbursement.
(c) If the amount held in the escrow account as of the date such taxes and insurance premiums are due is insufficient to pay the taxes and insurance premiums despite compliance by the mortgagor with subdivision (2) of subsection (a) of this section, the mortgage servicing company shall pay such taxes and insurance premiums from its own funds. The mortgage servicing company shall then give the mortgagor the option of paying the shortage over a period of not less than one year. The mortgage servicing company shall not charge or collect interest on such shortage during the one-year period.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2011 |
36a-716 |
Statement of Purpose:
To reduce the amount that mortgage servicing companies may require mortgagors to pay into an escrow account for the purpose of maintaining a reserve for the payment of real estate taxes or insurance premiums.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]