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Bill

HB 5503

AN ACT REQUIRING MORTGAGEES TO PROVIDE MORTGAGORS WITH PERIODIC STATEMENTS.

2025 Regular Session Introduced by Bobby Gibson

Connecticut requires mortgage lenders to regularly send borrowers detailed account statements, increasing transparency and accountability in residential mortgage servicing.

FILE NO. 225
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Bill Summary · HB 5503

Legislative bill overview

HB 5503 mandates that mortgage lenders (mortgagees) send regular periodic statements to borrowers (mortgagors) detailing their loan account information. The bill establishes a requirement for transparency in mortgage servicing by ensuring borrowers receive consistent written updates about their loan status, payments, and account balance.

Why is this important

Mortgage borrowers often lack clear visibility into their loan accounts, particularly regarding how payments are applied, remaining balance, and upcoming obligations. Regular statements reduce disputes between lenders and borrowers, help borrowers catch errors or fraudulent activity, and promote accountability in the mortgage servicing industry. This is especially relevant given historical complaints about mortgage servicer opacity during economic downturns.

Potential points of contention

  • Implementation costs: Mortgage servicers may argue the administrative burden and expense of generating and mailing/emailing periodic statements could increase borrower costs
  • Statement frequency and content specifications: Disagreement may arise over how often statements must be sent (monthly, quarterly) and what specific information must be included
  • Exemptions and applicability: Lenders may seek exemptions for certain loan types, small lenders, or digital-only borrowers, while consumer advocates may resist limiting the requirement's scope

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

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