Bill Text: CT SB00313 | 2013 | General Assembly | Comm Sub

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Bill Title: An Act Prohibiting Mortgage Lenders From Imposing Escrow Fees On Borrowers Who Do Not Escrow Property Taxes Or Insurance.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-02-07 - Public Hearing 02/14 [SB00313 Detail]

Download: Connecticut-2013-SB00313-Comm_Sub.html

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General Assembly		Committee Bill No. 313
January Session, 2013		LCO No. 2661
		*02661SB00313BA_*
Referred to Committee on BANKS
Introduced by:
(BA)

AN ACT PROHIBITING MORTGAGE LENDERS FROM IMPOSING ESCROW FEES ON BORROWERS WHO DO NOT ESCROW PROPERTY TAXES OR INSURANCE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2013) No mortgagee, as defined in section 36a-671 of the general statutes, that does business in this state or holds or purchases a mortgage secured by property in this state, shall impose an escrow fee on a mortgagor if the mortgagee does not receive and hold in escrow funds from such mortgagor for the subsequent distribution to others, including, but not limited to, the payment of taxes or insurance.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2013	New section

Statement of Purpose:

To prohibit mortgage lenders from imposing escrow fees on borrowers who do not escrow property taxes or insurance.

[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.]

Co-Sponsors:

SEN. MCKINNEY, 28th Dist.

S.B. 313