Connecticut Won’t Require Mortgage Servicer Licenses for Licensed Collection Agencies

Licensed collection agencies working on delinquent or defaulted mortgage loans in Connecticut do not need a mortgage servicer license, according to a memo published by State of Connecticut Department of Banking Commissioner Jorge L. Perez.

The memo, released at the end of January, suggests why there had been confusion before:

1) Per Connecticut statute, consumer collection agencies exclued "a person who services loans or accounts for the owners thereof when the arrangement includes, in addition to requesting payment from delinquent consumer debtors, the providing of other services such as receipt of payment, accounting, record-keeping, data processing services and remitting, for loans or accounts which are current as well as those which are delinquent."

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