Connecticut Real Estate Attorney Law Blog

Updated Information on Short Sale Negotiator Licensing in Connecticut

As I discussed in a prior blog post, fee based short sale negotiators or mortgage modification companies need a license to do business in Connecticut as of October 1, 2009.  In addition to a license, the new law also limits the fees that can be charged and requires a written agreement with the borrower, among other requirements.

The State Department of Banking (DOB) has now issued the required forms as well as provided further information on the licensing process.  The DOB has updated their web site to provide some guidance on who must be licensed, as well as providing links to the licensing forms.  The exemptions from licensing are listed, which include a CT licensed attorney, a lender, a CT licensed debt adjuster, and non-profit institutions.  The application fee is $1,600.00.  A number of forms must be filed and a bond must be obtained to apply for a license.

In addition, the DOB has issued a schedule of the maximum feesthat can be charged for performing short sale or mortgage modification services.  The maximum fee for a short sale or loan modification is $500.00, which can only be charged after the successful completion of the activities listed in the required written contract with the borrower.

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About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904

email

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0 commentsPaul Begemann • October 21 2009 10:47AM
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