Connecticut passed a bill requiring mortgage lenders, correspondent lenders, brokers, loan originators, loan processors or underwriters, and exempt registrants to provide a “notice of shared appreciation agreement” (notice) to a prospective borrower who is under a shared appreciation agreement. Under the bill, a mortgage lender, correspondent lender, broker, loan originator, loan processor or underwriter, or an exempt registrant must provide the notice not later than 3 business days after the prospective borrower submits and application to the mortgage lender, correspondent lender, broker, loan originator, loan processor or underwriter, or exempt registrant. Also, the “notice of shared appreciation agreement” requires specific content be disclosed to the prospective borrower. In addition, the bill amends the definition of mortgage servicer. The bill becomes effective October 1, 2025.

Click to view the CT SB 1257: https://www.tenaco.com/wp-content/uploads/2025/07/CT-SB-1257-07-02-25.pdf