Connecticut governor signs 3 mortgage relief bills
Associated Press, 07.10.09, 03:23 PM EDT
HARTFORD, Conn. -- Connecticut Gov. M. Jodi Rell has signed three bills aimed at helping struggling homeowners, including one that makes foreclosure mediation mandatory, not optional, for all foreclosures that began after July 1.
Rep. Ryan Barry, co-chairman of the legislature's Banks Committee, says currently less than 30 percent of those eligible for foreclosure mediation take advantage of it. It's a chance to determine if a loan modification or repayment schedule is possible.
The other bills set new standards for mortgage professionals, including testing and education requirements, and create a new crime of mortgage fraud.
Violators face a Class D felony, punishable by a maximum of five years in prison and $5,000 in fines. Multiple offenders face up to 10 years and $10,000 in fines.