Bill Text: CT SB00130 | 2014 | General Assembly | Introduced

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Bill Title: An Act Concerning The Payment Of First Or Secondary Mortgage Loan Proceeds By Wire Transfer.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2014-02-21 - Public Hearing 02/25 [SB00130 Detail]

Download: Connecticut-2014-SB00130-Introduced.html

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General Assembly		Raised Bill No. 130
February Session, 2014		LCO No. 363
		*00363_______BA_*
Referred to Committee on BANKS
Introduced by:
(BA)

AN ACT CONCERNING THE PAYMENT OF FIRST OR SECONDARY MORTGAGE LOAN PROCEEDS BY WIRE TRANSFER.

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

Section 1. (NEW) (Effective October 1, 2014) (a) Any person or entity engaged in the business of making residential mortgage loans in this state and licensed in accordance with part I(A) of chapter 668 of the general statutes, that chooses to utilize a wire transfer to send the loan proceeds to the mortgagee's attorney, shall transfer the loan proceeds to the bank that holds the account of the mortgagee's attorney by a wire transfer in a timely manner, but not later than the scheduled date and time of the closing of the loan or, in the case of a mortgage refinancing where any right of recission under 12 CFR 226.23 has terminated not later than the disbursement date. In the case of a person or entity engaged in the business of making secondary mortgage loans in this state, the provisions of this subsection shall apply only to secondary mortgage loans to finance the acquisition or initial construction of the mortgagor's principal dwelling.

(b) The Banking Commissioner may suspend, revoke or refuse to renew a license pursuant to section 36a-51 of the general statutes issued to a person or entity engaged in the business of making first mortgage loans or secondary mortgage loans in this state and licensed in accordance with part I(A) or part I(B) of chapter 668 of the general statutes, that fails to comply with subsection (a) of this section.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2014	New section

Statement of Purpose:

To address concerns regarding the difficulties of closing and scheduling the settlement of funds and the potential violation of the Attorney Settlement Agent's ethical obligation not to commingle funds of different clients when wire transfers are delayed and the closing attorneys close in escrow.

[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.]