Connecticut HB 5317: AN ACT DEFINING "MORTGAGE LOAN" FOR PURPOSES OF CERTAIN NOTICE PROVISIONS RELATING TO FLOOD DAMAGE AND INSURANCE.

Bill Text

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General Assembly Raised Bill No. 5317
February Session, 2026 LCO No. 2108

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT DEFINING "MORTGAGE LOAN" FOR PURPOSES OF
CERTAIN NOTICE PROVISIONS RELATING TO FLOOD DAMAGE
AND INSURANCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 49-7b of the 2026 supplement to the general statutes 1
is repealed and the following is substituted in lieu thereof (Effective July 2
1, 2026): 3
(a) For purposes of this section, "mortgage loan" means a loan that is 4
(1) secured by a first mortgage on one-to-four-family residential real 5
property located in this state, and (2) made for the purpose of financing 6
the purchase of such property. 7
[(a)] (b) Not later than ten days prior to the date of the closing in a 8
mortgage loan transaction, each creditor, as defined in section 49-6a, 9
shall notify the mortgage loan applicant, in writing, that: (1) Standard 10
homeowners insurance policies do not cover flood damage and related 11
losses; (2) flood damage to property may occur regardless of whether 12
the real property is located in a designated flood zone; and (3) the 13
applicant may wish to consult a licensed insurance producer or surplus 14

Raised Bill No. 5317

LCO 2108 2 of 2

lines broker concerning the availability and benefits of obtaining flood 15
insurance. 16
[(b)] (c) The notice required by subsection [(a)] (b) of this section shall 17
be written in plain language and signed and dated by the mortgage loan 18
applicant to acknowledge receipt of such notice. Each creditor shall keep 19
and maintain a copy of such notice with the mortgage loan applicant's 20
mortgage records. 21
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 49-7b

BA Joint Favorable