AN ACT CONCERNING CONSUMER CREDIT AND COMMERCIAL FINANCING.

SB 1257 amends Connecticut law to change how surety bonds for mortgage lenders, brokers, and loan originators can be canceled. It requires bond providers to give 30 days' written notice (via electronic system or certified mail) to both the business and the commissioner before canceling a bond. If this notice isn't provided, the commissioner automatically suspends the business's license and inactivates sponsored loan originator licenses on the cancellation date. The bill directly affects mortgage lenders, brokers, and their sponsored loan originators by creating a mandatory suspension process for bond cancellations without proper notice. This is a procedural change to licensing requirements, not a new consumer protection.