Connecticut passed a bill amending the Nondepository Mortgage Lenders and Brokers Act. Under the bill, a mortgage lender, correspondent lender, and broker must provide the borrower a “notice of flood insurance” (notice) under the following timeframes, as applicable:
- The date of closing if the mortgage loan is an open-end line of credit or home equity loan; or
- 10 days prior to the date of closing if the mortgage loan is not an open-end line of credit or home equity loan.
Previously, the notice only had to be provided 10 days prior to the date of closing for “any mortgage loan type” as described in Connecticut Senate Bill 9 (2024). This bill added the definition of “any mortgage loan type” to now include an open-end line of credit or a home equity loan and differentiates the timeframe in which the notice is required to be provided to the borrower based on the mortgage loan type.
The bill becomes effective July 1, 2026.
Click to view the CT HB 5208: https://www.tenaco.com/wp-content/uploads/2026/06/CT-HB-5208-05-30-26.pdf
