Sec. 36a-498c. Adoption of mortgage loan policy with respect to subprime mortgage loans and nontraditional mortgage loans.
Sec. 36a-498c. Adoption of mortgage loan policy with respect to subprime
mortgage loans and nontraditional mortgage loans. At least once a year, each mortgage lender and mortgage correspondent lender, both as defined in section 36a-485
and licensed under section 36a-489, shall adopt a mortgage loan policy with respect to
subprime mortgage loans and nontraditional mortgage loans made by such mortgage
lender or such mortgage correspondent lender based on and consistent with the most
current version of the Conference of State Bank Supervisors, American Association of
Residential Mortgage Regulators and National Association of Consumer Credit Administrators Statement on Subprime Mortgage Lending, and the Conference of State Bank
Supervisors and American Association of Residential Mortgage Regulators Guidance
on Nontraditional Mortgage Product Risks. Such licensees shall comply with such policy
and develop and implement internal controls that are reasonably designed to ensure such
compliance. The mortgage loan policy and any mortgage loan, as defined in section
36a-485, made pursuant to the policy shall be subject to examination concerning prudent
lending practices by the Banking Commissioner.
(P.A. 08-176, S. 56.)
History: P.A. 08-176 effective July 1, 2008.