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HB 5317

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

2026 Regular Session Introduced by Eric Berthel and 2 co-sponsors

Connecticut clarifies "mortgage loan" definition to ensure lenders provide flood damage and insurance notices to all borrowers, protecting property owners in flood-prone areas.

FILE NO. 111
#creditors #floodinsurance #homeowners'insurance #mortgages #notices
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Bill Summary · HB 5317

Legislative bill overview

HB 5317 clarifies the legal definition of "mortgage loan" specifically for Connecticut's flood damage and flood insurance notice requirements. The bill ensures that lenders must provide required flood risk disclosures to borrowers in a consistent, clearly defined manner under state law.

Why is this important

Flood insurance and disclosure requirements protect borrowers from unexpected financial risk in flood-prone areas. A clear definition prevents lenders from exploiting ambiguities to avoid providing critical risk information, ensuring Connecticut homebuyers and property owners make informed financing decisions about properties in flood zones.

Potential points of contention

  • Definition scope: Disagreement over whether the definition should include all loan types (construction loans, home equity lines, investment properties) or remain narrowly focused on primary mortgages
  • Lender compliance costs: Financial institutions may argue that expanded notice requirements increase administrative burdens and costs, potentially affecting lending rates
  • Flood insurance mandates: Tension between consumer protection advocates wanting stricter disclosures versus lenders preferring flexibility in notice timing and delivery methods

Compiled from official sources — confirm details with the bill’s official record.

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