On June 14, the governor of Connecticut signed HB 5490, which makes various amendments to the state’s banking statutes, including standardizing various requirements across several mortgage and nonmortgage licensing types. Among other things, the law (i) extends the commissioner’s authority over certain mortgage-related licensees (mortgage lenders, brokers, and originators; correspondent lenders, and processors or underwriters) to include small loan lenders, sales finance companies, sales finance companies, mortgage servicers, money transmitters, check cashers, debt adjustors, debt negotiators, consumer collection agencies, student loan servicers, and lead generators; (ii) outlines provisions concerning the commissioner’s authority to conduct investigations and examinations; (iii) establishes that for loans under $5,000, the maximum annual percentage rate (APR) shall not exceed the lesser of 36 percent or the maximum APR for interest “permitted with respect to the consumer credit extended under the Military Lending Act”; and (iv) requires sales finance companies to acquire, maintain, and report to the commissioner certain demographic information on ethnicity, race, and sex for any retail installment contract or application for such contract covering the sale of a motor vehicle. The law is effective October 1, with the exception of specified provisions.
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