Sec. 36a-760a. Duties of lenders and mortgage brokers relating to nonprime home loans.
Sec. 36a-760a. Duties of lenders and mortgage brokers relating to nonprime
home loans. (a) A lender shall not engage in conduct in any transaction, practice or
course of business in connection with the making of a nonprime home loan that is
misleading, deceptive or untruthful.
(b) Lenders and mortgage brokers shall have a duty of good faith with respect to
the performance of any contract with a borrower relative to a nonprime home loan. For
purposes of this subsection, the duty of good faith is the same as the obligation imposed
pursuant to section 42a-1-304 and includes the observance of reasonable common standards of fair dealing. The provisions of this subsection cannot be waived.
(c) In connection with a nonprime home loan that is a first mortgage loan, a lender
shall provide the borrower with a notice or letter that generally describes the terms of
the transaction. Such notice or letter shall be provided no later than three business days
prior to the closing, unless the borrower expressly requests an expedited closing and
the lender has not yet, acting in good faith, provided the letter or notice. In cases where
a letter or notice is required, the lender shall notify the borrower, within a reasonable
time period, of any subsequent material changes to the terms of the transaction. The
provisions of this subsection cannot be waived.
(P.A. 08-176, S. 22.)
History: P.A. 08-176 effective July 1, 2008.