Connecticut passed a bill imposing net worth requirements for large mortgage servicers. Under the bill, mortgage servicers that service (or subservice) at least 2,000 mortgage loans must meet the Federal Housing Finance Agency’s eligibility requirements for enterprise single-family seller/servicers with respect to minimum capital ratio, net worth and liquidity. The mortgage servicer must meet the requirements regardless of whether the mortgage servicer is approved for government sponsored enterprise servicing. The bill also requires the servicers to maintain sufficient allowable assets for liquidity to cover normal business operations. In addition, the bill requires the servicers to maintain a board of directors, annually procure an external audit, and establish a risk management program. The net worth and additional requirements do not apply to mortgage servicers that are depository institutions. Furthermore, the bill removed the 100-mile office requirement for mortgage loan originators employed by a lender or broker licensed under the Nondepository Mortgage Lenders and Brokers Act. The net worth requirement becomes effective October 1, 2022 and removal of the office requirement went into effect May 24, 2022.
Click to view the Connecticut Senate Bill 268: https://www.tenaco.com/wp-content/uploads/2022/05/CT-SB-268-05-24-22.pdf
