Connecticut passed a bill requiring a lender or service to accept full or partial prepayment of a mortgage loan. Under the bill, with respect to a mortgage loan made on or after January 1, 2027, a lender or servicer must accept full or partial prepayment of a mortgage loan from the borrower. A lender or servicer may not assess a prepayment charge with respect to any prepayment if the charge is prohibited by any state or federal law. However, with respect to a mortgage loan insured by the Federal Housing Administration, the borrower may be required to reimburse the lender or servicer up to the full amount of any charge, premium or fee required by the Federal Housing Administration to be paid by the lender or servicer upon payment of the mortgage loan prior to the date fixed for the payment. The bill becomes effective October 1, 2026.

Click here to view the CT SB 218: https://www.tenaco.com/wp-content/uploads/2026/09/CT-SB-218-05-30-26.pdf