Governor Dannel P. Malloy today applauded the Connecticut House of Representatives for unanimously approving legislation he introduced that will increase protections for homeowners facing mortgage delinquency or who are in foreclosure.
"While the housing market is showing signs of steady improvement, we must continue to do everything we can to ensure that banks treat homeowners fairly and honestly. This bill holds banks accountable and puts in place important protections for homeowners facing foreclosure. Simply put, it will help those families who are working so hard to keep their homes. This is what makes for a stronger economy and stronger communities," Governor Malloy said. "I want to thank the co-chairs of the Banks committee, Representative William Tong and Senator Carlo Leone, and the members of the House for moving this bill through the legislative process and I look forward to seeing its approval in the Senate."
The legislation, which the Governor unveiled at a news conference in January, refines the mediation process and makes it more efficient for borrowers and lenders. It requires all parties participating in the Foreclosure Mediation Program to mediate in good faith and establishes a reporting requirement to track the actions and behavior of the parties during this process. Failure to meet the standards will subject banks to financial and legal sanctions. It also creates a fast track foreclosure process to let the banks take ownership and sell properties when a homeowner has disappeared and did not show up to mediate.
The legislation is House Bill 6355 -- An Act Concerning Homeowner Protection Rights.