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

Summary

The bill defines a “mortgage loan” as a first‑mortgage loan used to buy a one‑ to four‑family home in Connecticut. It obligates lenders to provide a plain‑language written notice at least ten days before closing that standard homeowners policies don’t cover flood damage and that flood risk exists even outside designated flood zones. Borrowers must sign and date the notice, and lenders must keep a copy with the loan records.

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