Sec. 36a-760d. Requirements for making nonprime home loans.
Sec. 36a-760d. Requirements for making nonprime home loans. A lender shall
not make a nonprime home loan unless:
(1) With respect to nonprime home loans that are first mortgage loans originated
on or after January 1, 2010, the lender requires and collects a monthly escrow for the
payment of real property taxes and homeowner's insurance. The provisions of this subdivision shall not apply to: (A) FHA loans; or (B) a nonprime home loan product which,
in good faith, is generally designed and marketed to the public as a subordinate lien
home equity loan product but is secured by a first mortgage loan;
(2) To the extent applicable, the lender obtains the written certification or statement
under section 36a-760c; and
(3) The lender mailed or delivered to applicants, no later than three business days
after the receipt of a completed application for a nonprime home loan, a notice containing
a toll-free number that can be used to obtain a list of nonprofit housing counselors
approved by the United States Department of Housing and Urban Development. For
purposes of this subdivision, a lender may use the toll-free number which satisfies the
requirements of Section 106(c)(5) of the Housing and Urban Development Act of 1968
(12 USC 1701(x) Section (c)(5)). No borrower shall have a private right of action for
the lender's failure to deliver, on a timely basis, a notice required by this subdivision.
(P.A. 08-176, S. 25.)
History: P.A. 08-176 effective July 1, 2008.