SB 891 — AN ACT CONCERNING THE EZEQUIEL SANTIAGO FORECLOSURE MEDIATION PROGRAM AND OTHER ALTERNATIVES TO FORECLOSURE.
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This bill has been enacted into law. Introduced February 11, 2021. Enacted.
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Bill Text
What changed in the latest version
1553 added · 1864 removed1553 line(s) added, 1864 removed.
Substitute Senate GeneralBill Assembly File No.
248891 JanuaryPublic Session,Act 2021 Substitute Senate Bill No.
89121-44 Senate,AN AprilACT 1,CONCERNING 2021THE TheEZEQUIEL CommitteeSANTIAGO onFORECLOSURE BankingMEDIATION reportedPROGRAM throughAND SEN.OTHER ALTERNATIVES TO FORECLOSURE.
KASSER of the 36th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT CONCERNING THE EZEQUIEL SANTIAGO FORECLOSURE MEDIATION PROGRAM AND OTHER ALTERNATIVES TO FORECLOSURE.
(b) (1) Prior to July 1, 2023, when a mortgagee commences an action sSB891for /the Fileforeclosure of a mortgage on residential real property with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, the mortgagee shall give notice to the mortgagor of the Ezequiel Santiago Foreclosure Mediation Program established pursuant Substitute Senate Bill No.
248891 1to sSB891section File49-31m No.by attaching to the front of the foreclosure complaint that is served on the mortgagor:
248 for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, the mortgagee shall give notice to the mortgagor of the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m by attaching to the front of the foreclosure complaint that is served on the mortgagor:
(6) Notwithstanding any provision of the general statutes or any rule of law to the contrary, prior to July 1, 2023, no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action subject to the provisions of this subsection and sSB891instituted /by Filethe mortgagee to foreclose a mortgage on residential real Public Act No.
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248891 instituted by the mortgagee to foreclose a mortgage on residential real property unless:
(7) None of the mortgagor's or mortgagee's rights in the foreclosure action shall be waived by the mortgagor's submission of a foreclosure mediation request form to the court.] [(c) (1)(1)] (a) Prior to July 1, 2023,[2023] 2029, when a]a (a) Any mortgagee that commences an action for the foreclosure of a mortgage on residential real property with a return date on[on or afterafter] during the period from July 1, 2009, to June 30, 2029, inclusive, or, with respect to real property owned by a religious organization,organization,a a return date on[on or afterafter] during the period from October 1, 2011, [theto mortgagee]June 30, 2029, inclusive, the mortgagee shall give notice to the mortgagor of the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m by attaching to the front of the writ, summons and complaint that is served on the mortgagor:
[(A)] (1) A copy of the notice of foreclosure mediation, in such form as the Chief Court Administrator prescribes, [(B)] (2) a copy of the foreclosure mediation certificate form described in [subdivision (3) of this] subsection (c) of this section, in such form as the Chief Court Administrator prescribes, [(C)] (3) a blank appearance form, in such form as the Chief Court Administrator prescribes, [(D)] (4) with respect toanactionfortheforeclosureofamortgageonresidentialrealproperty with a return date on[on or afterafter] during the period from October 1, 2011, to September 30, 2013, inclusive, a mediation information form and a noticePublic containingAct contact information for authority-approved consumer credit counseling agencies, which form and notice shall be in such form as the Chief Court Administrator prescribes, and which form shall be designed to elicit sSB891 / File No.
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248891 notice containing contact information for authority-approved consumer credit counseling agencies, which form and notice shall be in such form as the Chief Court Administrator prescribes, and which form shall be designed to elicit current financial information and such other nonfinancial information from the mortgagor as the Chief Court Administrator, in consultation with representatives from the banking industryindustryandconsumer andadvocates,determineswill consumerfurthertheobjectives advocates, determines will further the objectives of the mediation program.
The Chief Court Administrator shall develop a premediation review protocol pursuant to which the mediator shall request that any documents submitted to the mediator for initial review that are incomplete, containcontainerrorsorarelikely errors or are likely to bebefoundunacceptable found unacceptable by the mortgagee be completed or corrected and that the completed or corrected documents be resubmitted to the mediator for review.
The instructions to the mediation information form shall explain that the completed mediation information form, along with accompanying documentation reasonably requested from the mortgagor by way of such instructions, shall be delivered to the mortgagee'scounsel not later thanfifteenbusiness daysprior to thedate of the initial mediation session, as identified in the notice provided pursuant to [subdivision (2) of subsection (c)] subsection (a) of section 49-31n, as amended by this act, and [(E)] (5) for an action to foreclose a mortgage on residential real property with a return date on or after October 1, 2013, the mediation information form shall instruct the mortgagor as to the objectives of the mediation program, explain the preliminary process of meeting with the mediator as described in [subdivision (4) of this subsection] subsection (d) of this section, instruct the mortgagor to begin gathering financial documentation commonly used in foreclosure mediation for use in meeting with the mediator and in mediation, and include a notice containing contact information for authority-approved consumer counseling agencies, which shall be in suchPublic formAct asNo. the Chief Court Administrator prescribes.
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891 such form as the Chief Court Administrator prescribes.
[(2)] (b) The court shall issue a notice of foreclosure mediation sSB891described /in File[subdivision No.(3)] subsection (c) of this [subsection] section to the mortgagor not later than the date three business days after the date the mortgagee returns the writ to the court.
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248 described in [subdivision (3)] subsection (c) of this [subsection] section to the mortgagor not later than the date three business days after the date the mortgagee returns the writ to the court.
With respect to actions with a return date [duringduring the period from]from on or after October 1, 2013, [toto June 30, 2023,[2023] inclusive,]2029, inclusive, such notice shall instruct the mortgagor to begin gathering financial information commonly used in foreclosure mediation for use in meeting with the mediator and in mediation.
The foreclosure mediation certificate form shall require the mortgagor to provide sufficient information to permit the court to confirmPublic thatAct theNo. defendant in the foreclosure action is a mortgagor, and to certify that said mortgagor has sent a copyof the mediation certificate form to the plaintiff in the action.
With21-44 respect5 to actions with a return date on or after October 1, 2015, in order to ensure that all necessary consents to the disclosure of nonpublic48 personalSubstitute financialSenate informationBill have been provided to the mortgagee, such that a spouse may be considered a permitted successor-in-interest, the court shall confirm that the foreclosure mediation certificate submitted by [(A)] (1) the spouse or former spouse provides consent to the full disclosure by the sSB891 / File No.
248891 5confirm sSB891that Filethe No.defendant in the foreclosure action is a mortgagor, and to certify that said mortgagor has sent a copyof the mediation certificate form to the plaintiff in the action.
248With respect to actions with a return date on or after October 1, 2015, in order to ensure that all necessary consents to the disclosure of nonpublic personal financial information have been provided to the mortgagee, such that a spouse may be considered a permitted successor-in-interest, the court shall confirm that the foreclosure mediation certificate submitted by [(A)] (1) the spouse or former spouse provides consent to the full disclosure by the mortgagee of such spouse's or former spouse's nonpublic personal financialinformationto anyother personwho isobligatedasaborrower on the note, to the extent the mortgagee has such information, and [(B)] (2) any other person who is a mortgagor provides consent to the full disclosure by the mortgagee of such person's nonpublic personal financial information to such spouse or former spouse, to the extent the mortgagee has such information.
[(4)] (d) Upon receipt of the mortgagor's appearance and foreclosure mediation certificate forms, and provided the court confirms the defendantPublic inAct theNo. foreclosure action is a mortgagor and that said mortgagor has sent a copy of the mediation certificate form to the plaintiff, the court shall assign the case to mediation and issue notice of such assignment to all appearing parties, which notice shall include an electronic mail address for all communications related to the mediation.
The21-44 court6 shallof issue48 suchSubstitute noticeSenate notBill earlier than the date five business days after the return date or by the date three business days after the date on which the court receives the mortgagor's appearance and foreclosure mediation certificate forms, whichever is later, except that if the court does not receive the appearance and foreclosure mediation certificate forms from the mortgagor by the date fifteen days after the return date for the foreclosure action, the court shall not assign the case sSB891 / File No.
248891 6defendant sSB891in Filethe No.foreclosure action is a mortgagor and that said mortgagor has sent a copy of the mediation certificate form to the plaintiff, the court shall assign the case to mediation and issue notice of such assignment to all appearing parties, which notice shall include an electronic mail address for all communications related to the mediation.
248The court shall issue such notice not earlier than the date five business days after the return date or by the date three business days after the date on which the court receives the mortgagor's appearance and foreclosure mediation certificate forms, whichever is later, except that if the court does not receive the appearance and foreclosure mediation certificate forms from the mortgagor by the date fifteen days after the return date for the foreclosure action, the court shall not assign the case to mediation.Promptly upon receipt of thenotice of assignment, but not later than the thirty-fifth day following the return date, the mortgagee or its counsel shall deliver to the mediator, via the electronic mail address provided for communications related to the mediation, and to the mortgagor, via first class, priority or overnight mail, [(A)] (1) an account history identifying all credits and debits assessed to the loan account and any related escrow account in the immediately preceding twelve-month period and an itemized statement of the amount required to reinstate the mortgage loan with accompanying information, written inplainlanguage,toexplainanycodesusedinthehistoryandstatement which are not otherwise self-explanatory, [(B)] (2) the name, business mailing address, electronic mail address, facsimile number and direct telephone number of an individual able to respond with reasonable adequacy and promptness to questions relative to the information submitted to the mediator pursuant to this subdivision, and any subsequent updates to such contact information, which shall be provided reasonably promptly to the mediator via the electronic mail address provided for communication related to the mediation, [(C)] (3) current versions of all reasonably necessary forms and a list of all documentation reasonably necessary for the mortgagee to evaluate the mortgagor for common alternatives to foreclosure that are available throughPublic theAct mortgagee, if any, [(D)] (4) a copy of the note and mortgage, including any agreements modifying such documents, [(E)] (5) summary information regarding the status of any pending foreclosure avoidance efforts being undertaken by the mortgagee, [(F)] (6) a copy of any loss mitigation affidavit filed with the court, [and (G)] (7) at the mortgagee's option, [(i) the history of foreclosure avoidance efforts with respect to the mortgagor, (ii)] (A) information regarding the condition of mortgaged property, and [(iii)] (B) such other information as the mortgagee may determine is relevant to meeting the objectives of the mediation program, and (8) the history of foreclosure avoidance efforts with respect to the mortgagor, including, without limitation, a description of the efforts made by the mortgagee to provide the mortgagor any loss mitigation option or foreclosure alternative, including those required or made available pursuant to any order, sSB891 / File No.
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248891 directivethrough orthe regulationmortgagee, issuedif orany, [(D)] (4) a copy of the note and mortgage, including any voluntaryagreements programmodifying announcedsuch documents, [(E)] (5) summary information regarding the status of any pending foreclosure avoidance efforts being undertaken by the mortgagee, [(F)] (6) a copy of any governmentalloss authoritymitigation inaffidavit responsefiled with the court, [and (G)] (7) at the mortgagee's option, [(i) the history of foreclosure avoidance efforts with respect to COVID-19the duringmortgagor, (ii)] (A) information regarding the publiccondition healthof mortgaged property, and civil[(iii)] preparedness(B) emergenciessuch declaredother byinformation as the Governormortgagee onmay Marchdetermine 10,is 2020,relevant orto anymeeting extensionthe objectives of suchthe declarations.mediation program, (8) if the mortgage is a federally backed mortgage loan, as defined in Section 4022 of P.L.
116-136, the history of the mortgagee's compliance with any obligation to notify the mortgagor of loss mitigation or foreclosure alternative options available for federally backed mortgage loans, including, without limitation, any such options required or made available pursuant to any order, directive or regulation issued by any federal governmental authority in response to COVID-19 during the public health and civil preparedness emergencies declared by the Governor on March 10, 2020, or any extension of such declarations, and (9) the history of foreclosure avoidance efforts voluntarily undertakenby themortgagee withrespect to themortgagor.
Following the mediator's receipt of such information, the court shall assign a mediator to the mediation and schedule a meeting with the mediator and all mortgagors who are relevant and necessary to the mediation and to any agreement being contemplated in connectionwith the mediation and shall endeavor to hold such meeting on or prior to theforty-ninthdayfollowingthereturndate.Thenoticeofsuchmeeting shall instruct the mortgagor to complete the forms prior to the meeting and to furnish such forms together with the documentation contained in the list, as provided by the mortgagee following the filing of the foreclosurePublic mediationAct certificate,No. at the meeting.
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891 foreclosure mediation certificate, at the meeting.
The mediator may elect to schedule[schedule subsequent meetings with the mortgagor andand] determineconduct whethersuch meeting or any mortgagorsubsequent maymeeting bewith excusedthe frommortgagor anin-personappearanceatsuchsubsequentmeeting.Themediatormayon excusea anyvirtual mortgagorplatform fromapproved attendingby suchthe meetingmediator orand may determine whether any subsequentmortgagor meetings,may providedbe theexcused mortgagorfrom showsan goodin-person causeappearance forat nonattendance.such meeting or subsequent meeting.
The mediator may excuse any mortgagor from attending such meeting or any subsequent meetings, provided the mortgagor shows good cause for nonattendance.
As soon as practicable, but in no case later than the eighty-fourth day following the return date, sSB891or /the Fileextended deadline if such an extended deadline is established pursuant to this subdivision, the mediator shall facilitate and confirm the submission by the mortgagor of the forms and documentation to the mortgagee's counsel via electronic means and, at the mortgagee's election, directly to the mortgagee per the mortgagee's instruction, and determine, based on the participating mortgagor's attendance at the meetings and the extent the mortgagor completed the forms and furnished the documentation contemplated in this subdivision, or failed to perform such tasks through no material fault of the mortgagee, and file a report with the court indicating, [(I)] (A) whether mediation shall be scheduled with the mortgagee, [(II)] (B) whether the mortgagor attended scheduled meetings with the mediator, [(III)] (C) whether the mortgagor fully or substantially completed the forms and furnished the Public Act No.
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248891 ordocumentationrequested the extended deadline if such an extended deadline is established pursuant to this subdivision, the mediator shall facilitate and confirm the submission by the mortgagor of the forms and documentation to the mortgagee's counsel via electronic means and, at the mortgagee's election, directly to the mortgagee per the mortgagee's instruction, and determine, based on the participating mortgagor's attendance at the meetings and the extent the mortgagor completed the forms and furnished the documentation contemplated in this subdivision, or failed to perform such tasks through no material fault of the mortgagee, and file a report with the court indicating, [(I)] (A) whether mediation shall be scheduled with the mortgagee, [(II)] (B) whether the mortgagor attended scheduled meetings with the mediator, [(III)] (C) whether the mortgagor fully or substantially completed the forms and furnished the documentationrequestedby themortgagee, [(IV)](D)thedate onwhich the mortgagee supplied the forms and documentation, and [(V)] (E) any other information the mediator determines to be relevant to the objectives of the mediation program.
If the court denies the mediator's motion, the extended deadline for purposes of this subdivision shall be three days sSB891after /the Filecourt No.rules on the motion.
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248 after the court rules on the motion.
If the mediator determines that the mortgagee shall participate in mediation, the court shall promptly issue notice to all parties of such determination and schedule a mediation session between the mortgagee and all mortgagors who are relevant and necessary to the mediation and to any agreement being contemplated in connection with the mediation, in accordance with subsection [(c)] (a) of section 49-31n, as amended by this act, to be held not later than five weeks following the submission to the mortgagee of the forms and documentation contemplated in this [subdivision]Public subsection.Act No.
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891 [subdivision] subsection.
[(5)] (e) Notwithstanding the provisions of this [subsection] section, the court may refer a foreclosure action brought by a mortgagee to the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m at any time, for good cause shown, provided the mortgagor has filed an appearance in said action and further provided the court shall, not later than the date three business days after the date on which it makes such referral, send a notice to each appearing party assigning the case to mediation and requiring the parties to participate in the premediation process described in [subdivision (4) of this] sSB891subsection /(d) Fileof No.this section, with the court establishing deadlines to ensure that the premediation process is to be completed by the parties as expeditiously as the circumstances warrant and permit.
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248 subsection (d) of this section, with the court establishing deadlines to ensure that the premediation process is to be completed by the parties as expeditiously as the circumstances warrant and permit.
[(6)]Public (f)Act NotwithstandingNo. any provision of the general statutes or any rule of law, [prior to July 1, 2023, (A)] (1) for the period of time which shall not exceed eight months from the return date, the mortgagor shall be permitted to file an answer, special defenses or counterclaims, but no mortgagee or mortgagor shall make any motion, request or demand with respect to the other, except those motions, requests or demands that relate to the mediation program described in section 49-31m and the mediation sessions held pursuant to such program, provided [(i)] (A) a mortgagor seeking to contest the court's jurisdiction may file a motion to dismiss and the mortgagee may object to such motion to dismiss in accordance with applicable law and the rules of the courts, and [(ii)] (B) if the mortgagor elects to make any other motion, request or demand with respect to the mortgagee, theeight-month limit shall no longer apply to either party;
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891 [(6)] (f) Notwithstanding any provision of the general statutes or any rule of law, prior to July 1, [2023, (A)] 2029, (1) for the period of time which shall not exceed eight months from the return date, the mortgagor shall be permitted to file an answer, special defenses or counterclaims, but no mortgagee or mortgagor shall make any motion, request or demand with respect to the other, except those motions, requests or demands that relate to the mediation program described in section 49-31m and the mediation sessions held pursuant to such program, provided [(i)] (A) a mortgagor seeking to contest the court's jurisdiction may file a motion to dismiss and the mortgagee may object to such motion to dismiss in accordance with applicable law and the rulesofthecourts, and[(ii)](B)ifthemortgagor electsto makeanyother motion, request or demand with respect to the mortgagee, the eight- month limit shall no longer apply to either party;
[(i)] (A) The mediation period set forth in subsection [(c)] (a) of section 49-49-31n, 31n, as amended by this act, has expired or has otherwise terminated, whichever is earlier, and, if fewer than eighteightmonthshaselapsedfromthereturndateatthetimeoftermination, months has elapsed from the return date at the time of termination, fifteen days have elapsed since such termination and any pending motion or request to extendtheextend the mediation period has been heard and denied by the court, or [(ii)] (B) the mediation program is not otherwise required or available.
sSB891[(7)] /(g) FileWith respect to foreclosure actions with a return date during the period from July 1, 2011, to June 30, [2023] 2029, inclusive, notwithstanding any provision of the general statutes or any rule of law to the contrary, the mortgagee shall be permitted following the eight- Public Act No.
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248891 [(7)] (g) With respect to foreclosure actions with a return date [during the period from] on or after July 1, 2011, [to June 30, 2023, inclusive,] notwithstanding any provision of the general statutes or any rule of law to the contrary, the mortgagee shall be permitted following the eight- month or fifteen-day period described in [subdivision (6) of this] subsection (f) of this section, to simultaneously file, as applicable, [(A)] (1) a motion for default, and [(B)] (2) a motion for judgment of strict foreclosure or a motion for judgment of foreclosure by sale with respect to the mortgagor in the foreclosure action.
The mediation period shall conclude not later than the conclusion of the third mediation session sSB891between /the Filemortgagor and mortgagee or seven months after the return Public Act No.
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248891 between the mortgagor and mortgagee or seven months after the return date, whichever is earlier, except that the court may, in its discretion, for good cause shown, upon the motion of any party or the mediator, extend the mediation period subject to the provisions of subdivision (9) of this subsection or shorten the mediation period.
A mortgagor's spouse, who is not a mortgagor but who lives in the subject property, may appearPublic atAct each mediation session, provided all appearing mortgagors consent, in writing, to such spouse's appearance or such spouse shows sSB891 / File No.
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248891 appear at each mediation session, provided all appearing mortgagors consent, in writing, to such spouse's appearance or such spouse shows good cause for his or her appearance and the mortgagors consent in writing to the disclosure of nonpublic personal information to such spouse.
Not later than the third business day after each mediation session held on or after June 18, 2013, the mediator shall file with the court a report indicating, to the extent applicable, (i) the extent to which each of the parties complied with the requirements set forth in this subdivision, including the requirement to engage in conduct that is consistent with the objectives of the mediation program and to possess the ability to mediate, (ii) whether the mortgagor submitted a complete package of financial documentation to the mortgagee, (iii) a general description of the foreclosure alternative being requested by the mortgagor, (iv) whether the mortgagor has previously been evaluated for similar requests, whether prior to mediation or in mediation, and, if so, whether there has been any apparent change in circumstances since a decision was made with respect to that prior evaluation, (v) whether the mortgagee has respondedPublic toAct the mortgagor's request for a foreclosure alternative and, if so, a description of the response and whether the mediator is aware of any material reason not to agree with the response, (vi) whether the mortgagor has responded to an offer made by the mortgagee on a sSB891 / File No.
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248891 responded to the mortgagor's request for a foreclosure alternative and, if so, a description of the response and whether the mediator is aware of any material reason not to agree with the response, (vi) whether the mortgagor has responded to an offer made by the mortgagee on a reasonably timely basis, and if so, an explanation of the response, (vii) whether the mortgagee has requested additional information from the mortgagor and, if so, the stated reasons for the request and the date by which such additional information shall be submitted so that information previously submitted by the mortgagor, to the extent possible, may still be used by the mortgagee in conducting its review, (viii) whether the mortgagor has supplied, on a reasonably timely basis, any additional information that was reasonably requested by the mortgagee, and, if not, the stated reason for not doing so, (ix) if information provided by the mortgagor is no longer current for purposes of evaluating a foreclosure alternative, a description of the out-of-date information and an explanation as to how and why such information is no longer current, (x) whether the mortgagee has provided a reasonable explanation of the basis for a decision to deny a request for a loss mitigation option or foreclosure alternative and whether the mediator is aware of any material reason not to agree with that decision, (xi) whether the mortgagee has complied with the time frames set forth in this subdivision for responding to requests for decisions, (xii) if a subsequent mediation session is expected to occur, a general description of the expectations for such subsequent session and for the parties prior to such subsequent session and, if not otherwise addressed in the report, whether the parties satisfied the expectations set forth in previous reports, and (xiii) a determination of whether the parties will benefit from further mediation.
AnyPublic requestAct byNo. the mortgagee to the mortgagor for additional or updated financial documentation shall be made in writing.
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891 Any request by the mortgagee to the mortgagor for additional or updated financial documentation shall be made in writing.
Any sanction that is imposed shall be proportional sSB891to /the Fileconduct No.and consistent with the objectives of the mediation program.
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248 to the conduct and consistent with the objectives of the mediation program.
Such policies and procedures shall, at a minimum, provide that the mediator shall advise the mortgagor at the first meeting required by subdivision (4) of subsection (c) of section 49-31l that a judgment of strict foreclosure or foreclosure by sale may cause the mortgagor to lose the residential real property to foreclosure.Public Act No.
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891 foreclosure.
(7) Foreclosure mediation request forms shall not be accepted by the court under this subsection on or after July 1, 2023, and the Ezequiel Santiago Foreclosure Mediation Program shall terminate when all mediation has concluded with respect to any applications submitted to sSB891the /court Fileprior No.to July 1, 2023.
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248 the court prior to July 1, 2023.
The court shall make its ruling not later than twenty days after the filing of such motion or request, and no judgment of strict foreclosure or any judgment ordering a foreclosure sale shall be entered until (i) the court denies the motion or request, or (ii) the conclusion of the extended mediationPublic session,Act exceptNo. as provided in subparagraph (B) of this subdivision.
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891 mediation session, except as provided in subparagraph (B) of this subdivision.
(B) The mediation period may be extended for one additional mediation session without a hearing held pursuant to this subdivision provided all parties to the mediation agree that such parties would benefit from such a session and, in consultation with the mediator, sSB891establish /an Fileexpeditious No.deadline for such session to take place.
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248 establish an expeditious deadline for such session to take place.
(10) For any case pending as of October 1, 2013, in which mediation is ongoing, (A) if three or fewer sessions have been held, such case shall be treated as if no sessions have been held as of said date for purposes of subdivision (9) of this subsection, and (B) if four or more sessions have been held, then any party or the mediator may move to terminate the mediation period or extend such period in accordance with subdivision (9) of this subsection and, if no such motion to extend is made, the mediation period shall conclude after the third mediation session occurring after October 1, 2013.] [(c)Public (1)]Act (a)No. For any action for the foreclosure of a mortgage on residential real property with a return date [during the period from] on or after July 1, 2009, [to June 30, 2023, inclusive,] or for any action for the foreclosure of a mortgage on real property owned by a religious organization with a return date [during the period from] on or after October 1, 2011, [to June30, 2023,inclusive,]themediationperiodunder the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m shall commence when the court sends notice to each appearing party scheduling the first foreclosure mediation session.
The21-44 mediation19 period shall conclude not later than the conclusion of the48 thirdSubstitute mediationSenate sessionBill between the mortgagor and mortgagee or seven months after the return date, whichever is earlier, except that the court may, in its discretion, for good cause shown, upon sSB891 / File No.
248891 18[(c) sSB891(1)] File(a) No.For any action for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2009, to June 30, [2023] 2029, inclusive, or for any action for the foreclosure of a mortgage on real property owned by a religious organization with a return date during the period from October 1, 2011, to June 30, [2023] 2029, inclusive, the mediation period under the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m shall commence when the court sends notice to each appearing party scheduling the first foreclosure mediation session.
248The mediation period shall conclude not later than the conclusion of the third mediation session between the mortgagor and mortgagee or seven months after the return date, whichever is earlier, except that the court may, in its discretion, for good cause shown, upon the motion of any party or request by the mediator, extend the mediation period subject to thetheprovisionsof provisions[subdivision(9) ofofthis [subdivisionsubsection]subsection (9)(i) ofofthis this subsection] subsection (h) of this section or shorten the mediation period.
[(2)][(2) (b) The mortgagor and mortgagee shall appear in person at eacheach] mediation(b) sessionEach and shall have the ability to mediate, except that [(A)] (1) if a party is represented by counsel, the party's counsel may appear in lieu of the party to represent the party's interests at the mediation, provided the party has the ability to mediate and the party is available [(i)] (A) during the mediation session by telephone, and [(ii)] (B) to participate in the mediation session by speakerphone, provided an opportunity is afforded for confidential discussions between the party and party's counsel, [(B)] (2) following the initial mediation session, if there are two or more mortgagors who are self-represented, only one mortgagor shall be requiredconducted to appear in personperson, at each subsequent mediation session unless good cause is shown, provided the othermediator mortgagorsareelects available [(i)] (A)during themediationsession,and [(ii)] (B) to participateconduct in the mediation session byon speakerphone,a [(C)]virtual (3)platform ifor agrants partypermission suffersto from a disabilityparty, or other significant hardship that imposes an undue burden on such party to appear in person, the mediatorparty's maycounsel, grant permission to suchappear partyat to participate in the mediation session byon telephone, and [(D)] (4) a mortgagorvirtual mayplatform beapproved excusedby from appearing at the mediationmediator. session if cause is shown that the presence of such mortgagor is not needed to further the interests of mediation.
In determining whether to conduct a mediation session on a virtual platform or to grant permission to appear at a mediation session on a virtual platform, the mediator may consider the desires of the parties and the parties' counsel, the technological and physical capabilities of the parties and the parties' counsel and the objectives of the mediation program.
The mortgagor and mortgagee shall appear at each mediation session, in person or on a virtual platform, as applicable, and shall have the ability to mediate, except that [(A)] (1) if a party is represented by counsel, the party's counsel may appear in lieu of the party to represent the party's interests at the mediation, provided the party has the ability to mediate and the party is available [(i)] (A) during the mediation Public Act No.
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891 sessionby telephone, and [(ii)](B)to participate inthemediationsession by speakerphoneorteleconference,providedan opportunity isafforded for confidential discussions between the party and party's counsel, [(B)] (2) following the initial mediation session, if there are two or more mortgagors who are self-represented, only one mortgagor shall be required to appear [in person] at each subsequent mediation session unless good cause is shown, provided the other mortgagors are available [(i)] (A) during the mediation session, and [(ii)] (B) to participate in the mediation session by speakerphone or teleconference, [(C)] (3) if a party suffers from a disability or other significant hardship that imposes an undue burden on such party to appear in person, the mediator may grant permission to such party to participate in the mediation session by telephone, and [(D)] (4) a mortgagor may be excused from appearing at the mediation session if cause is shown that the presence of such mortgagor is not needed to further the interests of mediation.
A mortgagor's spouse, who is not a mortgagor but who livesinlives thesubjectin property,maythe subject property, may appear at eachmediationeach mediation session, provided all appearing mortgagors consent, in writing, to such spouse's appearance or such spouse shows good cause for his or her appearance and the mortgagors consent, in writing, to the disclosure of nonpublic personal information to such spouse.
If the mortgagor has submitted a complete package of financial documentation in connection with a sSB891request /for Filea No.particular foreclosure alternative, the mortgagee shall have thirty-five days from the receipt of the completed package to respond with a decision and, if the decision is a denial of the request, provide the reasons for such denial.
248If 19the sSB891mortgagor Filehas, in connection with a request for a foreclosure alternative, submitted a financial package that is not complete, or if the mortgagee's evaluation of a complete package reveals that additional Public Act No.
24821-44 request21 for a particular foreclosure alternative, the mortgagee shall have thirty-five days from the receipt of the48 completedSubstitute packageSenate toBill respondNo. with a decision and, if the decision is a denial of the request, provide the reasons for such denial.
If891 the mortgagor has, in connection with a request for a foreclosure alternative, submitted a financial package that is not complete, or if the mortgagee's evaluation of a complete package reveals that additional information is necessary to underwrite the request, the mortgagee shall request the missing or additional information within a reasonable period of time of such evaluation.
Not later thanthethirdbusinessdaythan the third business day after each mediation session, the mediator shall file with the court a report indicating, to the extent applicable, [(i)] (A) the extent to which each of the parties complied with the requirements set forth in this subdivision, including the requirement to engage in conduct that is consistent with the objectives of the mediation program and to possess the ability to mediate, [(ii)] (B) whether the mortgagor submitted a complete package of financial documentation to the mortgagee, [(iii)] (C) a general description of the foreclosure alternative being requested by the mortgagor, [(iv)] (D) whether the mortgagor has previously been evaluated for similar requests, whether prior to mediation or in mediation, and, if so, whether there has been any apparent change in circumstances since a decision was made with respect to that prior evaluation, [(v)] (E) whether the mortgagee has responded to the mortgagor's request for a foreclosure alternative and, if so, a description of the response and whether the mediator is aware of any material reason not to agree with the response, [(vi)] (F) whether the mortgagor hasrespondedtoanoffermadebythemortgageeonareasonablytimely basis, and if so, an explanation of the response, [(vii)] (G) whether the mortgagee has requested additional information from the mortgagor and, if so, the stated reasons for the request and the date by which such sSB891additional /information Fileshall be submitted so that information previously submitted by the mortgagor, to the extent possible, may still be used by the mortgagee in conducting its review, [(viii)] (H) whether the mortgagor has supplied, on a reasonably timely basis, any additionalinformationthatwasreasonablyrequestedbythemortgagee, Public Act No.
24821-44 2022 sSB891of File48 Substitute Senate Bill No.
248891 additional information shall be submitted so that information previously submitted by the mortgagor, to the extent possible, may still be used by the mortgagee in conducting its review, [(viii)] (H) whether the mortgagor has supplied, on a reasonably timely basis, any additionalinformationthatwasreasonablyrequestedbythemortgagee, and, if not, the stated reason for not doing so, [(ix)] (I) if information provided by the mortgagor is no longer current for purposes of evaluating a foreclosure alternative, a description of the out-of-date information and an explanation as to how and why such information is no longer current, [(x)] (J)(J)if withthemortgage respectisafederally tobackedmortgage anyloan, foreclosure action filed on the basis of a default by the mortgagor during (i) the public health and civil preparedness emergencies declared by the Governor on March 10, 2020, or any extension of such declarations, or (ii) the period of time that any order, directive or regulation issued, or any voluntary program announced, by any governmental authority related to COVID-19, as defined in subsectionSection (d)4022 of sectionP.L. 49-31l, as amended by this act, is in effect, whether the mortgagee has, in good faith, offered the mortgagor a loss mitigation option or alternative to foreclosure related to COVID- 19, (K) whether the mortgagee has provided areasonable explanation of the basis for a decision to deny a request for a loss mitigation option or foreclosure alternative and whether the mediator is aware of any material reason not to agree with that decision, [(xi)] (L) whether the mortgagee has complied with the time frames set forth in this subdivision for responding to requests for decisions, [(xii)] (M) if a subsequent mediation sessionisexpectedto occur, ageneraldescription of the expectations for such subsequent session and for the parties prior to suchsubsequent sessionand,ifnot otherwise addressedinthereport, whether the parties satisfied the expectations set forth in previous reports, and [(xiii)] (N) a determination of whether the parties will benefit from further mediation.
116-136, the history of the mortgagee's compliance with any obligation to notify the mortgagor of loss mitigation or foreclosure alternative options available for federally backed mortgage loans, including, without limitation, any such options required or made available pursuant to any order, directive or regulation issued by any federal governmental authority in response to COVID-19, as defined in subsection (d) of section 49-31l, as amended by this act, during the public health and civil preparedness emergencies declared by the Governor on March 10, 2020, or any extension of such declarations, (K) the history of foreclosure avoidance efforts voluntarily undertaken by the mortgagee with respect to the mortgagor, (L) whether the mortgagee has provided a reasonable explanation of the basis for a decision to deny a request for a loss mitigation option or foreclosure alternative and whether the mediator is aware of any material reason not to agree with that decision, [(xi)] (M) whether the mortgagee has complied with the time frames set forth in this subdivision for responding to requests for decisions, [(xii)] (N) if a subsequent mediation sessionisexpectedto occur, ageneraldescription of the expectations for such subsequent session and for the parties prior to suchsubsequent sessionand,ifnot otherwise addressedinthereport, whether the parties satisfied the expectations set forth in previous reports, and [(xiii)] (O) a determination of whether the parties will benefit from further mediation.
Any sSB891Public /Act File No.
24821-44 2123 sSB891of File48 Substitute Senate Bill No.
248891 request by the mortgagee to the mortgagor for additional or updated financial documentation shall be made in writing.
Such policies and procedures shall, at a minimum, provide that the mediator shall advise the mortgagor at the first meeting required by [subdivision (4) of subsection (c)] subsection (d) of section 49-31l, as amended by this act, that:Public Act No.
[(A)]21-44 (1)24 Suchof mediation48 doesSubstitute notSenate suspendBill the mortgagor's obligation to respond to the foreclosure action beyond the limited time sSB891 / File No.
248891 22that: sSB891 File No.
248[(A)] (1) Such mediation does not suspend the mortgagor's obligation to respond to the foreclosure action beyond the limited time frame described in [subdivision (6) of subsection (c)] subsection (f) of section 49-31l, as amended by this act;
[(7)[(7)] (g) The foreclosure mediation program shall terminate when all mediation has concluded with respect to any foreclosure action with a return date during the period from July 1, 2009, to June 30, 2023,[2023] inclusive.]2029, [(8)]inclusive. (g) At any time during the mediation period, the mediator may refer a mortgagor who is the owner-occupant of one-to-four family residential real property to the mortgage assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to judgment when the conditions specified in [subdivision (6) of subsection (c)] subsection (f) of section 49-31l, as amended by this act, have been satisfied.
[(9)[(8)] (A)] (h) (1)At Theany time during the mediation periodperiod, shallthe concludemediator followingmay refer a mortgagor who is the thirdmediationsessionorowner-occupant ifmorethansevenmonthshaveof elapsedsinceone-to-four family residential real property to the returnmortgage date.assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to judgment when the conditions specified in [subdivision (6) of subsection (c)] subsection (f) of section 49-31l, as amended by this act, have been satisfied.
[(9) (A)] (i) (1) The mediation period shall conclude following the thirdmediationsessionor ifmorethansevenmonthshave elapsedsince the return date.
The court may also grant one additionalPublic mediationAct sessionNo. per motion or request upon a finding that any party has engaged, either intentionally or by a pattern or practice, in conduct that is contrary to the objectives of the mediation program.
The21-44 court25 shall make its ruling not later than twenty days after the filing of such48 motionSubstitute orSenate request,Bill and no judgment of strict foreclosure or any sSB891 / File No.
248891 23additional sSB891mediation Filesession No.per motion or request upon a finding that any party has engaged, either intentionally or by a pattern or practice, in conduct that is contrary to the objectives of the mediation program.
248The court shall make its ruling not later than twenty days after the filing of such motion or request, and no judgment of strict foreclosure or any judgment ordering a foreclosure sale shall be entered until [(i)] (A) the court denies the motion or request, or [(ii)] (B) the conclusion of the subsequent extended mediation session, except as provided in [subparagraph (B) of this] subdivision (2) of this subsection.
[(10)] (i)(j) For any case pending as of October 1, 2013, in which mediationPublic isAct ongoing, [(A)] (1) if three or fewer sessions have been held, such case shall be treated as if no sessions have been held as of said date for purposes of [subdivision (9) of this] subsection (h) of this section, and [(B)] (2) if four or more sessions have been held, then any party or the mediator may move to terminate the mediation period or extend such period in accordance with [subdivision (9) of this] subsection (h) of this section and, if no such motion to extend is made, the mediation sSB891 / File No.
24821-44 2426 sSB891of File48 Substitute Senate Bill No.
248891 mediation is ongoing, [(A)] (1) if three or fewer sessions have been held, such case shall be treated as if no sessions have been held as of said date for purposes of [subdivision (9) of this] subsection (i) of this section, and [(B)] (2) if four or more sessions have been held, then any party or the mediator may move to terminate the mediation period or extend such period in accordance with [subdivision (9) of this] subsection (i) of this section and, if no such motion to extend is made, the mediation period shall conclude after the third mediation session occurring after October 1, 2013.
The detailed data points for such summary, includingPublic dataAct toNo. be collected but not reported, shall be developed by theChiefCourtAdministratorinconsultationwithrepresentativesfrom the Governor's office, the Department of Banking, the banking industry and consumer advocates.] Sec.3.
Subdivisions(8)and(9)ofsection49-31kofthegeneralstatutes21-44 are27 repealedof and48 theSubstitute followingSenate isBill substitutedNo. in lieu thereof (Effective October 1, 2021):
(8)891 "Abilityincluding data to mediate"be meanscollected anbut exhibitionnot onreported, shall be developed by theChiefCourtAdministratorinconsultationwithrepresentativesfrom the partGovernor's office, the Department of Banking, the relevantbanking personindustry ofand aconsumer willingness,advocates.] includingSec.3.Subdivisions(8)and(9)ofsection49-31kofthegeneralstatutes aare reasonablerepealed ability,and tothe sSB891following /is Filesubstituted No.in lieu thereof (Effective October 1, 2021):
248(8) 25"Ability sSB891to Filemediate" No.means an exhibition on the part of the relevant person of a willingness, including a reasonable ability, to participate in the mediation process in a manner consistent with the objectives of the mediation program and in conformity with any obligations imposed in accordance with [subdivision (2) of subsection (b) or (c), as applicable, of] section 49-31n, as amended by this act, including, but not limited to, a willingness and reasonable ability to respond to questions and specify or estimate when particular decisions will be made or particular information will be furnished and, with respect to the mortgagee, a reasonable familiarity with the loan file, any loss mitigation options that are available to the mortgagor and the material issues raised in prior mediation sessions.
248Reasonable participatefamiliarity inwith thesuch mediationmaterial processissues inmay abe mannerachieved consistentby withbecoming thereasonably objectivesfamiliar ofwith the mediationmediator programreports andsubmitted in conformity with any obligations imposed in accordance with [subdivision (2)(4) of subsectionsubsections (b) orand (c),(c)] assubsection applicable,(b) of]of section 49-31n, as amended by this act, including, but not limited to, a willingness and reasonable ability to respond to questions and specify or estimate when particular decisions will be made or particular information will be furnished and, with respect to the mortgagee,extent asuch reasonablereports familiarity with the loan file, any loss mitigation options that are availableavailable; to the mortgagor and the material issues raised in prior mediation sessions.
Reasonable(9) familiarity"Permitted withsuccessor-in-interest" suchmeans materiala issuesperson maywho beis achieveda bydefendant becomingin reasonablya familiarforeclosure action with a return date on or after October 1, 2015, and either (A) the mediatorformer reportsspouse submittedof ina accordancedecedent-mortgagor, withwho [subdivisionacquired (4)sole title to the residential real property by virtue of subsectionsa (b)transfer andfrom (c)]the subsectiondecedent-mortgagor's (d)estate or by virtue of sectionthe 49-31n,death of the decedent-mortgagor where title was held as amendedjoint bytenants thisor act,tenants in theentirety, or (B)thespouse or former spouse ofamortgagor or former mortgagor who (i) acquired title to the extentresidential suchreal reportsproperty areby available;Public Act No.
(9)21-44 "Permitted28 successor-in-interest" means a person who is a defendant in a foreclosure action with a return date on or after October 1, 2015, and either (A) the former spouse of a48 decedent-mortgagor,Substitute whoSenate acquiredBill soleNo. title to the residential real property by virtue of a transfer from the decedent-mortgagor's estate or by virtue of the death of the decedent-mortgagor where title was held as joint tenants or tenants in theentirety, or (B)thespouse or former spouse ofamortgagor or former mortgagor who (i) acquired title to the residential real property by virtue of a transfer from such mortgagor or former mortgagor where such transfer resulted from a court decree dissolving the marriage, a legal separation agreement or a property settlement agreement incidentalto sucha decree or separationagreement,and(ii) ensuresthat all necessary consents to the disclosure of nonpublic personal financial information have been provided to the mortgagee in accordance with [subdivision (3) of] subsection (c) of section 49-31l, as amended by this act.
891 virtue of a transfer from such mortgagor or former mortgagor where such transfer resulted from a court decree dissolving the marriage, a legal separation agreement or a property settlement agreement incidentalto sucha decree or separationagreement,and(ii) ensuresthat all necessary consents to the disclosure of nonpublic personal financial information have been provided to the mortgagee in accordance with [subdivision (3) of] subsection (c) of section 49-31l, as amended by this act.
sSB891(a) /A Filemortgagee, No.as defined in section 49-8a, shall include the form promulgated by the Judicial Branch, in accordance with [subdivision (3) of] subsection (c) of section 49-31l, as amended by this act, concerning notice of community-based resources to parties involved in foreclosure mediation with any notice to a mortgagor, as defined in said section 49- 8a, of an intent to accelerate the mortgage loan.
248 26 sSB891 File No.
248 (a) A mortgagee, as defined in section 49-8a, shall include the form promulgated by the Judicial Branch, in accordance with [subdivision (3) of] subsection (c) of section 49-31l, as amended by this act, concerning notice of community-based resources to parties involved in foreclosure mediation with any notice to a mortgagor, as defined in said section 49- 8a, of an intent to accelerate the mortgage loan.
The Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m shall be funded within available appropriations.appropriations and available until June 30, [2023] 2029.
[and available until June 30, 2023.] The size of such program shall be determined by available funding and the number and need of participants in such program.
(1)Public "AggregateAct familyNo. income" means the total income of persons residing in the same household as the [mortgagor] homeowner and any other resident of the household declared by the [mortgagor] homeowner as a dependent for federal tax purposes, from whatever source derived, including, but not limited to, pensions, annuities, retirement benefits and Social Security benefits, provided the authority may exclude from income (A) reasonable allowances for dependents, (B)reasonable allowancesfor medicalexpenses,(C) allor any part of the earnings of gainfully employed minors or family members other than the chief wage earner, (D) income not regularly received, and (E) such other expenses as the authority may allow;
21-44 29 of 48 Substitute Senate Bill No.
891 (1) "Aggregate family income" means the total income of persons residing in the same household as the [mortgagor] homeowner and any other resident of the household declared by the [mortgagor] homeowner as a dependent for federal tax purposes, from whatever source derived, including, but not limited to, pensions, annuities, retirement benefits and Social Security benefits, provided the authority may exclude from income (A) reasonable allowances for dependents, (B)reasonable allowancesfor medicalexpenses,(C) allor any part of the earnings of gainfully employed minors or family members other than the chief wage earner, (D) income not regularly received, and (E) such other expenses as the authority may allow;
(3) "Mortgage" means a mortgage deed or other instrument which sSB891constitutes /a Filefirst No.or second consensual lien, [on one-to-four family owner-occupied residentialrealproperty locatedinthisstate, including, but not limitedto,a single-family unit inacommoninterest community] including a reverse mortgage or a home equity conversion mortgage, on residential real property;
248 27 sSB891 File No.
248 constitutes a first or second consensual lien, [on one-to-four family owner-occupied residentialrealproperty locatedinthisstate, including, but not limitedto,a single-family unit inacommoninterest community] including a reverse mortgage or a home equity conversion mortgage, on residential real property;
(6) "Housing expense" means the sum of the [mortgagor's] homeowner's monthly maintenance expense in a common interest community, utility expense, heating expense, hazard insurance payment,Public taxesAct andNo. required mortgage payment, including escrows;
21-44 30 of 48 Substitute Senate Bill No.
891 payment, taxes and required mortgage payment, including escrows;
or (B) (i) a significant increase in the dollar amount of the periodic payments required bybythemortgage; the [mortgage] homeowner;
(ii)(ii)anunanticipatedrise aninhousing unanticipated rise in housing expenses;
or (iii) expenses related to the disability, illness or sSB891death /of Filea No.member of the [mortgagor's] homeowner's family, but does not include expenses related to the accumulation of credit or installment debt incurred for recreational or nonessential items prior to the occurrence of the alleged circumstances beyond the [mortgagor's] homeowner's control in an amount that would have caused the [mortgagor's] homeowner's total debt service to exceed sixty per cent of aggregate family income at that time;
248 28 sSB891 File No.
248 death of a member of the [mortgagor's] homeowner's family, but does not include expenses related to the accumulation of credit or installment debt incurred for recreational or nonessential items prior to the occurrence of the alleged circumstances beyond the [mortgagor's] homeowner's control in an amount that would have caused the [mortgagor's] homeowner's total debt service to exceed sixty per cent of aggregate family income at that time;
A qualified consumer credit counseling agency must either be certified as a housing counseling agency by the federal Department of Housing and Urban Development orPublic otherwiseAct determinedNo. accepted by the authority;
21-44 31 of 48 Substitute Senate Bill No.
891 or otherwise determined accepted by the authority;
sSB891(a) /Not Filelater No.than January 1, 1994, the authority shall establish, within available funds, a program to provide emergency mortgage assistance payments to [mortgagors] homeowners who are mortgagors in accordance with the provisions of sections 8-265cc to 8-265kk, inclusive, as amended by this act.
248 29 sSB891 File No.
248 (a) Not later than January 1, 1994, the authority shall establish, within available funds, a program to provide emergency mortgage assistance payments to [mortgagors] homeowners who are mortgagors in accordance with the provisions of sections 8-265cc to 8-265kk, inclusive, as amended by this act.
(b)NotwithstandingPublic anyAct provisionofthegeneralstatutes,orNo. any rule of law to the contrary, on and after July 1, 2008, no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action instituted by the mortgagee to foreclose a mortgage commenced on or after said date, for the foreclosure of an eligible mortgage unless (1) notice to [the mortgagor] the homeowner who is a mortgagor hasbeen given by the mortgagee in accordance with section 8-265ee, as amended by this act, and the time for response has expired, and (2) a determination has been made on the [mortgagor's] homeowner's application for emergency mortgage assistance payments in accordance with section 8-265ff, as amended by this act, or the applicable time periods set forth in sections 8-265cc to 8-265kk, inclusive, as amended by this act, have expired, whichever is earlier.For purposes of this section and sections 8-265ee to 8-265kk, inclusive, as amendedbythisact,an"eligiblemortgage"isamortgagewhichsatisfies the standards contained in subdivisions (1), (7) and (9) to (12), inclusive, of subsection (e) of section 8-265ff, as amended by this act.
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891 (b)Notwithstanding any provisionofthegeneralstatutes,or any rule of law to the contrary, on and after July 1, 2008, no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action instituted by the mortgagee to foreclose a mortgage commenced on or after said date, for the foreclosure of an eligible mortgage unless (1) notice to [the mortgagor] the homeowner who is a mortgagor hasbeen given by the mortgagee in accordance with section 8-265ee, as amended by this act, and the time for response has expired, and (2) a determination has been made on the [mortgagor's] homeowner's application for emergency mortgage assistance payments in accordance with section 8-265ff, as amended by this act, or the applicable time periods set forth in sections 8-265cc to 8-265kk, inclusive, as amended by this act, have expired, whichever is earlier.For purposes of this section and sections 8-265ee to 8-265kk, inclusive, as amendedbythisact,an"eligiblemortgage"isamortgagewhichsatisfies the standards contained in subdivisions (1), (7) and (9) to (12), inclusive, of subsection (e) of section 8-265ff, as amended by this act.
(a) On and after July 1, 2008, a mortgagee who desires to foreclose upon a mortgage which satisfies the standards contained in subdivisions (1), (9), (10) and (11) of subsection (e) of section 8-265ff, as amended by this act, shall give notice to [the mortgagor] each sSB891homeowner /who Fileis No.a mortgagor by registered, or certified mail, postage prepaidattheaddressofthepropertywhichissecuredbythemortgage.
248 30 sSB891 File No.
248 homeowner who is a mortgagor by registered, or certified mail, postage prepaidattheaddressofthepropertywhichissecuredbythemortgage.
Such notice shall advise the [mortgagor] homeowner of his delinquency or other default under the mortgage and shall state that the [mortgagor] homeowner has sixty days from the date of such notice in which to (1) have a face-to-face meeting, telephone or other conference acceptable to the authority with the mortgagee or a face-to-facePublic meetingAct withNo. a consumer credit counseling agency to attempt to resolve the delinquency or default by restructuring the loan payment schedule or otherwise, and (2) contact the authority, at an address and phone number contained in the notice, to obtain information and apply for emergency mortgage assistance payments if the [mortgagor] homeowner and mortgagee are unable to resolve the delinquency or default.
(b)21-44 Except33 in cases in which the mortgagee refuses to meet with the [mortgagor] homeowner, if the [mortgagor] homeowner fails to meet with the mortgagee or comply with any of the48 timeSubstitute limitationsSenate specifiedBill in the notice as provided in subsection (a) of this section, or if the [mortgagor's] homeowner's application is not filed by the date thirty days after the date of any default in payment under an agreement as provided in subsection (c) of this section or if the [mortgagor's] homeowner's application for emergency mortgage assistance payments is not approved by the date thirty calendar days after the date of receipt of the [mortgagor's] homeowner's application in accordance with the provisions of section 8-265ff, as amended by this act, the foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, exceptasprovidedinsubsection(e)ofthissection,continuewithoutany further restriction or requirement under the provisions of sections 8- 265cc to 8-265kk, inclusive, as amended by this act, provided the mortgagee files an affidavit with the court stating the notice provisions of subsection (a) of this section have been complied with and that either the [mortgagor] homeowner failed to meet with the mortgagee or failed to comply with all of the time limitations specified in the notice as provided in subsection (a) of this section or that the [mortgagor's] sSB891 / File No.
248891 31face-to-face sSB891meeting Filewith No.a consumer credit counseling agency to attempt to resolve the delinquency or default by restructuring the loan payment schedule or otherwise, and (2) contact the authority, at an address and phone number contained in the notice, to obtain information and apply for emergency mortgage assistance payments if the [mortgagor] homeowner and mortgagee are unable to resolve the delinquency or default.
248(b) Except in cases in which the mortgagee refuses to meet with the [mortgagor] homeowner, if the [mortgagor] homeowner fails to meet with the mortgagee or comply with any of the time limitations specified in the notice as provided in subsection (a) of this section, or if the [mortgagor's] homeowner's application is not filed by the date thirty days after the date of any default in payment under an agreement as provided in subsection (c) of this section or if the [mortgagor's] homeowner's application for emergency mortgage assistance payments is not approved by the date thirty calendar days after the date of receipt of the [mortgagor's] homeowner's application in accordance with the provisions of section 8-265ff, as amended by this act, the foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, exceptasprovidedinsubsection(e)ofthissection,continuewithoutany further restriction or requirement under the provisions of sections 8- 265cc to 8-265kk, inclusive, as amended by this act, provided the mortgagee files an affidavit with the court stating the notice provisions of subsection (a) of this section have been complied with and that either the [mortgagor] homeowner failed to meet with the mortgagee or failed to comply with all of the time limitations specified in the notice as provided in subsection (a) of this section or that the [mortgagor's] homeowner's application for emergency assistance payments was not approved by the date thirty calendar days after the date of receipt of the [mortgagor's] homeowner's application, or that a determination of ineligibility was made.
(c)Public If,Act afterNo. a face-to-face meeting, telephone or other conference acceptable to the authority, as provided in subsection (a) of this section, the [mortgagor] homeowner and the mortgagee reach an agreement to resolve the delinquency or default and, because of financial hardship due to circumstances beyond the [mortgagor's] homeowner's control, the [mortgagor] homeowner is unable to fulfill the obligations of the agreement, the [mortgagor] homeowner may apply to the authority for emergency mortgage assistance payments under sections 8-265cc to 8- 265kk, inclusive, as amended by this act, by the date thirty days afterthe date of any default in payment under the agreement.
21-44 34 of 48 Substitute Senate Bill No.
891 (c) If, after a face-to-face meeting, telephone or other conference acceptable to the authority, as provided in subsection (a) of this section, the [mortgagor] homeowner and the mortgagee reach an agreement to resolve the delinquency or default and, because of financial hardship due to circumstances beyond the [mortgagor's] homeowner's control, the [mortgagor] homeowner is unable to fulfill the obligations of the agreement, the [mortgagor] homeowner may apply to the authority for emergency mortgage assistance payments under sections 8-265cc to 8- 265kk, inclusive, as amended by this act, by the date thirty days afterthe date of any default in payment under the agreement.
(a) (1) Any [mortgagor] homeowner who is a mortgagor may apply sSB891for /emergency Filemortgage assistance payments under sections 8-265cc to 8-265kk, inclusive, as amended by this act, if [such mortgagor (1)] (A) Public Act No.
24821-44 3235 sSB891of File48 Substitute Senate Bill No.
248891 for emergency mortgage assistance payments under sections 8-265cc to 8-265kk, inclusive, as amended by this act, if [such mortgagor (1)] (A) such homeowner (i) has received notice of intent to foreclose as provided in section 8-265ee, as amended by this act, [or (2) (A)] (ii) is sixty days or more delinquent on a mortgage, or [(B) such mortgagor] (iii) anticipates that he or she will be sixty days or more delinquent on a mortgage based on financial hardship beyond such [mortgagor's] homeowner's control, provided the authority determines that such [mortgagor] homeowner will be so delinquent, or (B) the homeowner's mortgage is in forbearance.
(d)Public TheAct [mortgagor] homeowner shall provide the authority with full sSB891 / File No.
24821-44 3336 sSB891of File48 Substitute Senate Bill No.
248891 (d) The [mortgagor] homeowner shall provide the authority with full disclosure of all assets and liabilities, whether singly or jointly held, and all household income regardless of source.
(2) Lump-sum additions to family assets such as inheritances, capital gains, insurance payments included under health, accident, hazard or workers' compensation policies and settlements, verdicts or awards for personal or property losses or transfer of assets without consideration withinoneyearwithinone year ofthetime ofapplication.Pending claimsfor such items must be identified by the homeowner as contingent assets.
During said thirty-day period no judgment of strict foreclosure or any judgment ordering foreclosure by sale shall be entered in any action for the foreclosure of any mortgage or lien any mortgagee or lienholder holds on the [mortgagor's] homeowner's real property,property. except that such prohibition on the entry of judgment shall not apply to a foreclosure action commenced by a lienholder.
(1) The real property securing the mortgage [is a one-to-four family owner-occupiedPublic residence,Act including, but not limited to, a single family unit in a common interest community,] or underlying the lien is residentialrealpropertythat istheprincipalresidenceofthe[mortgagor sSB891 / File No.
24821-44 3437 sSB891of File48 Substitute Senate Bill No.
248891 owner-occupied residence, including, but not limited to, a single family unit in a common interest community,] or underlying the lien is residentialrealpropertythat istheprincipalresidenceofthe[mortgagor and is located in this state] homeowner;
(4) There is a reasonable prospect that [the mortgagor] (A) a homeowner who applies for emergency mortgage assistance payments will be able to resume full mortgage payments on the original, modified or refinanced mortgage within sixty months after the beginning of the period in which emergency mortgage assistance payments are provided inPublic accordanceAct with a written plan formulated or approved by the authority and pay the mortgage in full in level monthly payments of principal and interest, subject only to payment changes as provided in the mortgage, by its maturity date, and (B) a homeowner who applies for emergency lien assistance payments will be able to resume regular sSB891 / File No.
24821-44 3538 sSB891of File48 Substitute Senate Bill No.
248891 in accordance with a written plan formulated or approved by the authority and pay the mortgage in full in level monthly payments of principal and interest, subject only to payment changes as provided in the mortgage, by its maturity date, and (B) a homeowner who applies for emergency lien assistance payments will be able to bring the debt underlying the lien current and resume regular payments to the lienholder for the tax, water, assessment or usage charges underlying the lien after payment by the authority of emergency lien assistance payments;
(5) The [mortgagor] homeowner has applied to the authority for emergencymortgageemergencymortgageorlienassistancepaymentsonanapplicationform orlienassistancepaymentsonanapplicationform prescribed by the authority which includes a financial statement disclosing all assets and liabilities of the [mortgagor] homeowner, whether singly or jointly held, and all household income regardless of source;
For the purposes of this subdivision, if a [mortgagor] homeowner has been more than thirty days in arrears four or more times on a residential mortgage within the previous year, the [mortgagor] homeowner shall bePublic ineligibleAct forNo. emergency mortgage assistance payments unless the [mortgagor] homeowner can demonstrate that the prior delinquency was the result of financial hardship due to circumstances beyond the [mortgagor's] homeowner's control.
21-44 39 of 48 Substitute Senate Bill No.
891 be ineligible for emergency mortgage assistance payments unless the [mortgagor] homeowner can demonstrate that the prior delinquency was the result of financial hardship due to circumstances beyond the [mortgagor's] homeowner's control.
sSB891(8) /The Filemortgagee No.or lienholder is not otherwise prevented by law from foreclosing upon the mortgage;
248 36 sSB891 File No.
248 (8) The mortgagee or lienholder is not otherwise prevented by law from foreclosing upon the mortgage;
(10) The [mortgagor] homeowner has not previously received emergency mortgage or lien assistance payments from the authority, provided[provided a [mortgagor]mortgagor] except that (A) a homeowner who has previously received such[such] mortgage assistance payments shall be eligible to reapply for mortgage assistance if the [mortgagor] homeowner has reinstated the mortgage orand the [mortgagor shall not have been] homeowner is not delinquent for at least six consecutive months immediately following such reinstatement, and (B) a homeowner who has previously received lien assistance payments shall be eligible to reapply for lien assistance if the homeowner has brought the debt underlying the lien current and the [mortgagor] homeowner shallis not havedelinquent beenon delinquentregular payments to the lienholder for atthe leasttax, sixwater, assessment or usage charges underlying the lien for eighteen consecutive months immediately following the date such reinstatement;debt is made current;
and (12)Public TheAct [mortgagor]No. homeowner meets such other procedural requirements as the authority may establish, provided the authority shallnot prohibit ahomeowner fromparticipating intheprogramsolely on the basis that the homeowner received a discharge of debt through a bankruptcy filing and did not reaffirm such debt.
21-44 40 of 48 Substitute Senate Bill No.
891 (12) The [mortgagor] homeowner meets such other procedural requirements as the authority may establish, provided the authority shallnot prohibit ahomeowner fromparticipating intheprogramsolely on the basis that the homeowner received a discharge of debt through a bankruptcy filing and did not reaffirm such debt.
The total monthly payment made by the authority, to or on behalf of a [mortgagor] homeowner under subsection (c) of this section, shall be not more than twenty-eight per cent of one hundred forty per sSB891cent /of Fileannual No.area median income, as published by the United States Department of Housing and Urban Development, divided by twelve.
248 37 sSB891 File No.
248 cent of annual area median income, as published by the United States Department of Housing and Urban Development, divided by twelve.
(b) A [mortgagor] homeowner on whose behalf the authority is making emergency mortgage assistance payments shall, during the periodPublic inAct whichNo. such assistance is provided, make monthly payments to the authority in lieu of the [mortgagor's] homeowner's monthly mortgage payments.
21-44 41 of 48 Substitute Senate Bill No.
891 period in which such assistance is provided, make monthly payments to the authority in lieu of the [mortgagor's] homeowner's monthly mortgage payments.
(d)Theauthority shall establish proceduresfor periodicreviewofthe [mortgagor's] homeowner's financial circumstances for the purpose of determining the necessity for continuation, termination or adjustment of the amount of emergency mortgage assistance payments or sSB891adjustment /of Filethe No.payments by the [mortgagor] homeowner pursuant to subsection (b) of this section.
248Payments 38shall sSB891be Filediscontinued when the authority determines that, due to changes in the [mortgagor's] homeowner's financial condition, the payments are no longer necessary in accordance with the standards contained in section 8-265ff, as amended by this act, or the [expiration of the] sixty-month period of [a mortgagor] eligibility for such payments under subsection (e) of section 8-265ff, as amended by this act, has expired, whichever is sooner, and a foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, proceed without further restriction or requirement under sections 8-265cc to 8-265hh, inclusive, as amended by this act.The authority may adjust payments by the [mortgagor] homeowner Public Act No.
24821-44 adjustment42 of the48 paymentsSubstitute bySenate theBill [mortgagor]No. homeowner pursuant to subsection (b) of this section.
Payments891 shall be discontinued when the authority determines that, due to changes in the [mortgagor's] homeowner's financial condition, the payments are no longer necessary in accordance with the standards contained in section 8-265ff, as amended by this act, or the [expiration of the] sixty-month period of [a mortgagor] eligibility for such payments under subsection (e) of section 8-265ff, as amended by this act, has expired, whichever is sooner, and a foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, proceed without further restriction or requirement under sections 8-265cc to 8-265hh, inclusive, as amended by this act.The authority may adjust payments by the [mortgagor] homeowner pursuant to subsection (b) of this section based on a review under this subsection.
(f) If any mortgagee scheduled to receive payments from the authority under the provisions of sections 8-265cc to 8-265kk, inclusive, as amended by this act, fails to receive the full amount of such payment sSB891from /the Fileauthority No.within thirty days of the scheduled due date, or if the [mortgagor] homeowner fails to observe and perform all of the terms, covenants and conditions of the mortgage, the mortgagee shall provide a fifteen-day notice to the authority and the foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, proceed without any further restriction or requirement under sections 8-265cc to 8-265kk, inclusive, as amended by this act.
248 39 sSB891 File No.
248 from the authority within thirty days of the scheduled due date, or if the [mortgagor] homeowner fails to observe and perform all of the terms, covenants and conditions of the mortgage, the mortgagee shall provide a fifteen-day notice to the authority and the foreclosure of the [mortgagor's] homeowner's mortgage may, at any time thereafter, proceed without any further restriction or requirement under sections 8-265cc to 8-265kk, inclusive, as amended by this act.
(NEW) (Effective October 1, 2021) (a) If the authority approves a homeowner for emergency lien assistance under the provisions of sectionPublic 8-265ffAct ofNo. the general statutes, as amended by this act, the authority shall make emergency lien assistance payments directly to each lienholder secured by the homeowner's real property for the full amount due and payable to the lienholder under the lien.
21-44 43 of 48 Substitute Senate Bill No.
891 section 8-265ff of the general statutes, as amended by this act, the authority shall make emergency lien assistance payments directly to eachlienholder securedby thehomeowner'srealproperty for (1)thefull amount due and payable to the lienholder under the lien, or (2) the full amount due and payable to the lienholder under the lien for the thirty- six-month period commencing on the date the first tax, water, assessment or usage charge underlying the lien became due and payable, whichever is less.
Section 8-265hh of the general statutes is repealed and the sSB891following /is Filesubstituted No.in lieu thereof (Effective October 1, 2021):
248(a) 40Upon sSB891approval Fileof emergency mortgage or lien assistance Public Act No.
24821-44 following44 isof substituted48 inSubstitute lieuSenate thereofBill (EffectiveNo. October 1, 2021):
(a)891 Upon approval of emergency mortgage or lien assistance payments, the authority shall enter into an agreement with the [mortgagor] homeowner for repayment of all such assistance with interest as provided in this section.
(b) Repayment of amounts owed to the authority from a [mortgagor] homeowner under the provisions of sections 8-265cc to 8-265kk, inclusive, as amended by this act, shall be secured by a mortgage on the [mortgagor's] homeowner's real property, provided said mortgage shall not be deemed to take priority over any other mortgage or lien in effect sSB891Public /Act File No.
24821-44 4145 sSB891of File48 Substitute Senate Bill No.
248891 against such property on the date the emergency mortgage is recorded.
ThePublic ConnecticutAct Housing Finance Authority shall adopt procedures in accordance with section 1-121 to implement the provisions of sections sSB891 / File No.
24821-44 4246 sSB891of File48 Substitute Senate Bill No.
248891 The Connecticut Housing Finance Authority shall adopt procedures in accordance with section 1-121 to implement the provisions of sections 8-265cc to 8-265hh, inclusive, as amended by this act.
(a) If the authority determines that additional funding sources are necessary to provide emergency mortgage or lien assistance payments to homeowners in accordance with sections 8-265cc to 8-265kk, inclusive, as amended by this act, the authority may, in consultation with the State Treasurer, the Comptroller, representatives from Connecticut-based banks and a state banking industry association, establishaspartoftheemergencymortgageandlienassistanceprogram a component program that shall be operatedadministered by the authority in collaboration with Connecticut-based banks and that may include, but need not be limited to, loan guarantees.
The authority shall notify the State Treasurer of the authority's intention to establish a component program prior to establishing such program and the State Treasurer shall (1) advise the authority as to the state's ability to provide loan guaranteesunder such program, and (2)recommend(2) recommend guidelines for such guarantees.
(b) If funds are not available to provide emergency mortgage or lien assistancePublic paymentsAct toNo. [mortgagors] homeowners in accordance with sections 8-265cc to 8-265kk, inclusive, as amended by this act, the authority shall notify all mortgagees and lienholders and shall not accept applications for emergency mortgage or lien assistance payment.
sSB89121-44 /47 Fileof 48 Substitute Senate Bill No.
248891 43assistance sSB891payments Fileto No.[mortgagors] homeowners in accordance with sections 8-265cc to 8-265kk, inclusive, as amended by this act, the authority shall notify all mortgagees and lienholders and shall not accept applications for emergency mortgage or lien assistance payment.
248 Uponreceiptofsuchnoticefromtheauthorityanduntilmortgagees and lienholders receive a further notice from the authority that such funds are again available and applications for [emergency mortgage] such assistance payments are again being accepted by the authority:
ThisApproved actJune shall14, take2021 effectPublic asAct followsNo. and shall amend the following sections:
Section21-44 148 Octoberof 1,48 2021 49-31l Sec.
2 October 1, 2021 49-31n Sec.
3 October 1, 2021 49-31k(8) and (9) Sec.
4 October 1, 2021 49-31r(a) Sec.
5 October 1, 2021 49-31v Sec.
6 October 1, 2021 8-265cc Sec.
7 October 1, 2021 8-265dd Sec.
8 October 1, 2021 8-265ee Sec.
9 October 1, 2021 8-265ff Sec.
10 October 1, 2021 8-265gg Sec.
11 October 1, 2021 New section Sec.
12 October 1, 2021 8-265hh Sec.
13 October 1, 2021 8-265ii Sec.
14 October 1, 2021 8-265kk Statement of Legislative Commissioners:
In Section 2(b)(2), "with respect to any foreclosure action filed on the basis of a default by the mortgagor during (I) the public health and civil preparedness emergencies declared by the Governor on March 10, 2020, or any extension of such declarations, or (II) the period of time that any order, directive or regulation issued or any voluntary program announced by any governmental authority related to COVID-19, as defined in subsection (d) of section 49-31l, as amended by this act, is in effect, whether the mortgagee has, in good faith, offered the mortgagor a loss mitigation option or alternative to foreclosure related to COVID- 19, (xi)" was deleted to conform with the changes being made in Section sSB891 / File No.
248 44 sSB891 File No.
248 2, the brackets around "(xi)", "(xii)" and "(xiii)" were deleted to conform with the changes being made in Section 2, and "(xii)", "(xiii)" and "(xiv)" were deleted to conform with the changes being made in Section 2.
BA Joint Favorable Subst.
sSB891 / File No.
248 45 sSB891 File No.
248 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Judicial Dept.
BF - Cost None None Treasurer, Debt Serv.
GF - Potential See Below See Below Cost CHFA Other - Cost See Below See Below Note:
BF=Banking Fund;
GF=General Fund Municipal Impact:
None Explanation The bill removes the sunset provision of the Ezequiel Santiago Foreclosure Mediation Program, currently scheduled to end June 30, 2023, and results in a cost in FY 24 (and ongoing in the outyears subject to inflation) of $2.2 million for 10 staff members.
The bill expands the existing Emergency Mortgage Assistance Program (EMAP), administered by the Connecticut Housing Finance Authority (CHFA), to aid homeowners under additional circumstances with mortgage relief and establishes a new emergency lien assistance component to the program.
These expansions are anticipated to result in greater annual EMAP costs to CHFA and therefore faster draw down of CHFA's existing EMAP funding.
EMAP is partially funded through General Obligation (GO) bond funds.
As of March 1, 2021, unallocated bond balance available to the EMAP provides assistance in the form of a 30-year, fixed-rate loan for eligible homeowners.
Repayment of such loans provides funding for additional lending.
sSB891 / File No.
248 46 sSB891 File No.
248 program is $5 million.
The bill does not change GO bond authorizations relevant to the program.
Future General Fund debt service costs may be incurred sooner underthebillto thedegreethat it causesauthorizedGO bond funds to be expended more rapidly than they otherwise would have been.
Depending on demand for the emergency lien assistance program specifically, the bill may result in greater annual EMAP administration costs for CHFA, such as costs for a new staff person, which would be funded from EMAP program funds.
If CHFA determines that additional EMAP funding is necessary, the bill allows CHFA to develop a component loan program operated in collaboration with Connecticut-based banks, which may impact the rate of expenditure of existing EMAP funding.
It is anticipated that expenditure requirements for CHFA under such a program (e.g.
providing loan guarantees) would be lower than under EMAP, so to the extent it is used, this provision of the bill may offset some of the higher annual EMAP costs discussed above.
It is not anticipated that such a program would result in state costs beyond the funds already authorized for EMAP.
The Out Years State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $ FY 26 $ Judicial Dept.
BF - Cost 2.2 million 2.3 million 2.3 million (JUD95000) Treasurer, Debt GF - Potential See Below See Below See Below Serv.
(OTT14100) Cost CHFA Other - Cost See Below See Below See Below (HFA19600) Note:
BF=Banking Fund;
GF=General Fund Municipal Impact:
None The annualized ongoing fiscal impact identified above would continue into the future subject to available funding, program demand and the terms of any bonds issued.
Sources:
Connecticut Housing Finance Authority sSB891 / File No.
248 47 sSB891 File No.
248 OLR Bill Analysis sSB 891 AN ACT CONCERNING THE EZEQUIEL SANTIAGO FORECLOSURE MEDIATION PROGRAM AND OTHER ALTERNATIVES TO FORECLOSURE.
SUMMARY This bill makes permanent the Ezequiel Santiago Foreclosure Mediation Program (see BACKGROUND).
Current law sunsets the program on June 30, 2023.
The bill also (1) requires mortgagees and mediators to include information about COVID-19 related foreclosure alternatives in certain existing reports, (2) repeals a requirement that the Chief Court Administrator report on the program to the Banking Committee by March 1, 2023, and (3) repeals obsolete provisions related to the program.
The bill also establishes an emergency lien assistance program, within the Connecticut Housing Finance Authority’s (CHFA) Emergency Mortgage Assistance Program (EMAP), to provide loans to homeowners who are facing foreclosure due to liens from:
1.
municipal water or sewer charges, 2.
municipal tax debt, or 3.
condominium or common interest association assessments and fines.
It expands the existing EMAP program by allowing homeowners to apply for and receive emergency mortgage assistance payments if (1) their mortgage is in forbearance or (2) they are facing foreclosure or delinquency on a reverse mortgage or home equity conversion mortgage (HECM), under the same eligibility standards as under current law for the program.
For both EMAP and the new emergency sSB891 / File No.
248 48 sSB891 File No.
248 lien assistance payments program, the bill prohibits CHFA from disqualifying applicantssolely because they previously dischargeddebt through bankruptcy and did not reaffirm it.
Lastly, the bill allows CHFA to establish a component loan program with Connecticut-based banks, which may include loan guarantees, if it determines additional funding is necessary for emergency payments under the above programs.
The bill also makes minor, technical, and conforming changes.
EFFECTIVE DATE:
October 1, 2021 §§ 6-14 — EMERGENCY LIEN ASSISTANCE PAYMENTS Beginning July 1, 2021, the bill requires CHFA to, within available funds, provide emergency lien assistance payments to homeowners.
As under the EMAP program, a “homeowner” is the owner-occupant of one-to-four family residential real estate, including individual common interest association units.
Under the bill, a “lien” is a lien on real property due to debt from municipal tax, water, or sewer charges or condominium or common interest association assessments and fines.
Under the bill, as under existing law for the EMAP program, any necessary and related administrative and operation expenses CHFA incurs implementing the program can be paid out from program funds.
The bill incorporates emergency lien assistance payments into CHFA’s EMAP program, including by applying similar review and application procedures.
In a few cases, it is unclear the extent to which certain EMAP provisions apply to the new lien program, as described below.
Applications The bill allows homeowners to apply for emergency lien assistance payments if (1) they have received notice of a lienholder’s intent to foreclose;
or (2) they are 60 days or more delinquent on the debt secured by the lien, or they anticipate that they will be based on financial sSB891 / File No.
248 49 sSB891 File No.
248 hardship beyond their control (i.e., a significant reduction of aggregate family household income or increase in expenses that could not be alleviated by liquidating assets), as CHFA determines.
Homeowners must apply for a loan on a form CHFA provides and complete and sign the application under penalty of false statement.
(By law, false statement is a class A misdemeanor, punishable by up to one year in prison, a fine of up to $2,000, or both (CGS § 53a-157b).) Homeowners must also disclose all (1) assets and liabilities, whether singly or jointly held, and (2) household income from all sources, according to the same calculations and procedures as individuals applying for EMAP.
Thus, assets include the sum of savings and checking accounts, stocks, bonds, securities, capital investments, pensions and retirement funds valued at more than $100,000, personal property, real property equity (including the property subject to the lien), and lump sum additions, such as inheritances and insurance payments.
Approval Process and Foreclosure Exception As with existing EMAP applications, CHFA must determine an individual’s eligibly for emergency lien assistance payments within 30 days of receiving the application.
However, the bill does not prevent a lienholder from foreclosing during this period, as existing law does for EMAP applicants.
Presumably, as applicable to lien applications, the bill prohibits CHFA from providing emergency lien assistance payments unless it finds that the homeowner’s principal residence is the real property securing the lien and the homeowner:
1.
is delinquent on the applicable fees or taxes, and the lienholder intends to foreclose;
2.
is a Connecticut resident suffering financial hardship and unable to make payments on the debt;
sSB891 / File No.
248 50 sSB891 File No.
248 3.
has a reasonable prospect of resuming regular payments to the lienholder after getting emergency lien assistance payments;
4.
applied for assistance and disclosed all necessary assets and liabilities, as described above;
5.
has insufficient income or net worth, based on their financial statement, to make regular payments to the lienholder;
6.
has a reasonable prospect of repaying the emergency lien assistance within a reasonable amount of time;
7.
has not mortgaged the real property for commercial or business purposes;
8.
has not previously received CHFA lien assistance, unless they have reinstated the underlying debt and have not been delinquent for at least the following six consecutive months;
and 9.
is not in default under their mortgage for reasons other than payment delinquency.
CHFA must also find that the (1) homeowner meets any other procedural requirements it establishes and (2) lienholder is not otherwise prevented by law from foreclosing.
Notification to Lienholders The bill requires CHFA, within eight business days of receiving an application, to notify all lienholders listed on the application.
Emergency Lien Payment Loans For approved applications, the bill requires CHFA to make emergencylienassistancepaymentsdirectlytothelienholderforthefull amount due on each eligible lien secured by the homeowner’s real property.
The payment amount may include all arrearages and reasonable costs and attorney’s fees incurred by the lienholder and related to any foreclosure action.
sSB891 / File No.
248 51 sSB891 File No.
248 Any amount CHFA pays to a lienholder becomes a loan made by CHFA to the homeowner.
It must be evidenced by any documents CHFA requires and is subject to repayment and interest under the same terms as EMAP loans (i.e., interest is based upon the cost of the funds to the state determined by the treasurer, in consultation with CHFA).
Interest accrues when repayment is required to begin.
Repayment The bill requires CHFA to enter into an agreement with an approved applicant for monthly loan repayments, including interest, after the emergency payments end.
However, if a homeowner’s total housing expenses, including projected repayments, is greater than 35% of their aggregate family income, the bill defers repayment until the ratio falls below that threshold.
The bill, presumably, requires homeowners to make monthly payments to the authority in at least the amount they would have paid towards liens.
By law, EMAP requires homeowners to make monthly payments of at least the amount they would have paid towards the mortgage.
AswithEMAPloans,theauthoritymustestablishwrittenprocedures to periodically review a homeowner’s financial circumstances to determine repayment amounts.
Loans Secured by Lien Repayment under the bill is secured by a mortgage on the homeowner’s real property, but it does not take priority over any other mortgages or liens in effect when it is recorded.
As with EMAP loans, CHFA may subordinate a lien assistance loan if it is required for the homeowner to obtain a home improvement loan to preserve the property.
Misrepresentation and Failure to Receive Funds As with existing EMAP procedures, any emergency lien assistance applicant that misrepresents financial or pertinent information may be denied assistance and required to immediately pay back the loan in full.
sSB891 / File No.
248 52 sSB891 File No.
248 Additionally, a lienholder may foreclose after providing CHFA 15 days’ notice if:
1.
they do not receive the full amount of an emergency lien assistance payment from CHFA within 30 days of its scheduled due date, or 2.
the homeowner fails to observe the lien’s terms, covenants, and conditions.
In both these circumstances, a lienholder may proceed with enforcement or foreclosure actions, as applicable, without further restriction or requirement.
Inadequate Funding As with EMAP, if there is inadequate funding for emergency lien assistance payments, the bill (1) requires CHFA to notify lienholders and stop accepting applications and (2) allows lien foreclosures to proceed normally.
§ 14 — COMPONENT LOAN PROGRAM The bill allows CHFA to establish a component loan program in collaboration with Connecticut-based banks if it determines that additional funding is needed for emergency mortgage or lien payments under the EMAP or lien programs described above.
It must do so in consultation with the treasurer, comptroller, representatives from Connecticut-based banks, and a state banking industry association.
The component program may include loan guarantees.
Under the bill, loans issued through the component program must be used to provide emergency mortgage or lien assistance payments.
CHFA must notify the treasurer of its intent to establish this component program, and the treasurer must (1) advise CHFA on the state’s ability to provide loan guarantees and (2) recommend loan guarantee guidelines.
Under the bill, a Connecticut-based bank is a bank or out-of-state sSB891 / File No.
248 53 sSB891 File No.
248 bank that has deposit-taking branches in Connecticut.
§§ 1-5 — EZEQUIEL SANTIAGO FORECLOSURE MEDIATION PROGRAM Reporting Requirement Repealed The bill eliminates a requirement that the chief court administrator submit a report to the Banking Committee by March 1, 2023, summarizing mediation session details and outcomes.
Mortgagee Reports Existing law requires the mortgagee to provide certain information to the mortgagor and mediator within a specified deadline prior to mediation.
As part of this, current law gives the mortgagee the option to include a history of its foreclosure avoidance efforts with respect to the mortgagor.
The bill instead makes this mandatory.
It requires this information to include a description of the mortgagee’s efforts to provide the mortgagor any loss mitigation options or foreclosure alternatives, including those required or made voluntarily available by any governmental authority in response to the COVID-19 public health and civil preparedness emergencies declared by the governor.
Mediator Reports By law, a mediator must file a report with the court after each mediation session containing certain information, such as the extent to which the mortgagee and mortgagor are complying with the program’s requirementsanda generaldescriptionoftheforeclosure alternativethe mortgagor is requesting.
The bill adds additional reporting requirements for foreclosure actions filed due to a mortgagor’s default during (1) the COVID-19 public health and civil preparedness emergencies declared by the Governor or (2) the time that any governmental COVID-19 related order, directive, or regulation, or voluntary program is in effect.
During this period, the report must include whether the mortgagee has, in good faith, offered the mortgagor a COVID-19 related loss mitigation option sSB891 / File No.
248 54 sSB891 File No.
248 or foreclosure alternative.
BACKGROUND Ezequiel Santiago Foreclosure Mediation Program By law, this program brings together judicial branch mediators;
lenders;
and borrowers or owner-occupants, as applicable.
If an eligible borrower or owner-occupant files an appearance and requests mediation, the lender must participate.
It is available to (1) owner- occupants of one- to four-family residential real property who use it as their primary residence and (2) religious organizations.
The property must be in Connecticut, and the owner-occupant must be either the borrower under a mortgage on the property or a permitted successor- in-interest (i.e., someone who, among other things, has title to the property due to certain events such as divorce or the borrower’s death).
COMMITTEE ACTION Banking Committee Joint Favorable Substitute Yea 13 Nay 5 (03/17/2021) sSB891 / File No.
248 55
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Action History
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SIGNED BY GOVERNOR
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TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR
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TRANSMITTED TO SECRETARY OF THE STATE
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PUBLIC ACT 21-44
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IN CONCURRENCE
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HOUSE PASSED, SEN. AMEND. SCH. A
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HOUSE ADOPTED SEN. AMEND. SCH. A
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HOUSE CALENDAR NUMBER 493
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FAV. RPT., TABLED FOR HOUSE CALENDAR
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SEN. PASSED, SEN. AMEND. SCH. A
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SEN. ADOPTED SEN. AMEND. SCH. A
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FILE NO. 248
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SENATE CALENDAR NUMBER 173
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/31/21
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FILED WITH LCO
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Joint Favorable Substitute
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PUBLIC HEARING 0302
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REF. TO JOINT COMM. ON Banking
Sponsors
- Minnie Gonzalez · Primary
- Robyn A. Porter · Primary
- Kenneth M Gucker · Primary
- Patricia A. Dillon · Primary
- Christopher Rosario · Primary
- Susan M. Johnson · Primary
- Bobby G. Gibson · Primary
- Hilda E. Santiago · Primary
- Charlie L. Stallworth · Primary
- Andre F. Baker · Primary
- Jason Doucette · Primary
- Saud Anwar · Primary
- Tom Delnicki · Primary
- Quentin W. Phipps · Primary
- Patricia Billie Miller · Primary
- Larry B. Butler · Primary
- Christine Conley · Primary
- Matthew L. Lesser · Primary
Sponsorship breakdown
Export CSV (upgrade) →18 sponsors · 0 co-sponsors · 169 not signed on
Sponsors (18)
- Minnie Gonzalez Democratic
- Porter, Robyn A.
- Gucker, Kenneth M
- Patricia A. Dillon Democratic
- Christopher Rosario Democratic
- Susan M. Johnson Democratic
- Bobby G. Gibson Democratic
- Hilda E. Santiago Democratic
- Stallworth, Charlie L.
- Andre F. Baker Democratic
- Jason Doucette Democratic
- Saud Anwar Democratic
- Tom Delnicki Republican
- Phipps, Quentin W.
- Patricia Billie Miller Democratic
- Larry B. Butler Democratic
- Conley, Christine
- Matthew L. Lesser Democratic
Co-sponsors (0)
None.
Not signed on (169)
169 members have not signed on to this bill.
Show all 169 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 891?
- SB 891 is sponsored by Minnie Gonzalez (Democratic), Porter, Robyn A., Gucker, Kenneth M, Patricia A. Dillon (Democratic), Christopher Rosario (Democratic), Susan M. Johnson (Democratic), Bobby G. Gibson (Democratic), Hilda E. Santiago (Democratic), Stallworth, Charlie L., Andre F. Baker (Democratic), Jason Doucette (Democratic), Saud Anwar (Democratic), Tom Delnicki (Republican), Phipps, Quentin W., Patricia Billie Miller (Democratic), Larry B. Butler (Democratic), Conley, Christine, and Matthew L. Lesser (Democratic).
- What is the current status of SB 891?
- This bill has been enacted into law. Introduced February 11, 2021. Enacted.
- Where can I track SB 891?
- Track SB 891 free on One Click Politics — get push/email alerts when it moves.
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