Connecticut foreclosure mediation bill moves out of banks committee

A bill to prevent mortgage lenders from foreclosing on property until a homeowner completes a foreclosure mediation process moved out of the Connecticut Assembly’s banks committee. If passed, H.B. 6351 would prohibit lenders from ordering a foreclosure sale or default judgment in Connecticut unless the homeowner has been notified of the possibility of seeking mediation assistance and has been allotted enough time to seek help and go through the mediation process. A lender also would be prohibited from foreclosing unless the borrower has been given enough time to file a mediation request and the request period allowed has expired without the homeowner filing for assistance. Out of 17 voting lawmakers on the banks committee, 14 voted for the bill. The bill’s current language has frustrated banks who say the mediation process can take up to two years in some cases, according to the Hartford Courant. Write to Kerri Panchuk.