The Connecticut Banking Department recently sponsored a predatory lending conference for the industry.

The presentation went very well for the 300 mortgage industry professionals that attended, and suprisingly not one admitted to doing any predatory lending during the conference to the Banking Department.

There has been several dozen reports of flipping activities in the Fairfield county area causing many lenders to begin utilizing inhouse valuation systems to perform due diligence on appraisals. A few mortgage brokers have already been asked to obtain specific comps that were closed more recently or were closer in distance from the subject property being appraised. (Lender is national subprime entity).

The Connecticut Banking Department also warned everyone in the room that it is a moral obligation for consumers and professionals to report any predatory mortgage activity to the appropriate regulatory agencies and that the Connecticut Department of Banking expects the Connecticut Licensed Mortgage Companies to not do business with unlicensed or predatory companies. They also stated that it is a requirement that they report activities in question to them as soon as possible.

Connecticut has a High Loan High Cost Regulation that restrict total fees as well as refinances from the same company in a 24 month period. It would be very wise to read the latest regulations found on the Connecticut Department of Banking Website to make sure you are in compliance with the newest state restrictions.