Ensure Compliance with CT HB #5353
Request for Comparison of Fee Schedules to Ensure Compliance with CT HB #5353
This notification pertains only to Cenlar’s clients that are required to maintain a mortgage servicing license issued by the State of Connecticut, or that otherwise plan to obtain such license for 2015. If your company does not have a mortgage servicing license issued by the State of Connecticut, then this notification does not apply to your company.
Over the past several months, Cenlar has been preparing for the implementation of Connecticut House Bill #5353, which will take effect on January 1, 2015. Cenlar has already addressed almost all of the new requirements this legislation imposes; however, we need your assistance to review and confirm compliance with one particular requirement of the new law.
This new law requires that if a mortgage servicer acquires the servicing rights to a loan on or after January 1, 2015, the servicer must now provide to the borrower a schedule of its servicing-related fees, in addition to any notices required under RESPA. If Cenlar has agreed to send the RESPA notices on your company’s behalf, then we will also provide the borrower with the required fee schedule. The fee schedule that Cenlar will use for this purpose is the fee schedule that Cenlar has created and maintains.
However, the legislation imposes one additional qualification on the fee schedule that must be provided to the borrower. The fee schedule that is provided to the borrower may not contain any fees in excess of the fees listed on the fee schedule that is filed with the Connecticut Banking Commissioner as part of the process of acquiring or renewing a Connecticut State mortgage servicing license. Therefore, if your company is required to be licensed by the State of Connecticut in order to operate as a mortgage servicer, then we need your assistance to ensure that any fee schedule we provide to borrowers on your company’s behalf in conjunction with the acquisition of loan servicing rights will not violate the requirements of this legislation.
Please compare the fee schedule that your company filed with the Connecticut Banking Commissioner as part of your mortgage servicer license application for the upcoming year to the fee schedule that Cenlar maintains (click here). Please compare all categories of fees on the fee schedules. If any of the fees on the Cenlar fee schedule do exceed the corresponding fees on your company’s fee schedule, you will need to file a revised fee schedule with the Connecticut Banking Commissioner that matches the fees listed on Cenlar’s fee schedule.