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House of Representatives
HB5317 / File No. 111 1
General Assembly File No. 111
February Session, 2026 House Bill No. 5317
House of Representatives, March 23, 2026
The Committee on Banking reported through REP. DOUCETTE
of the 13th Dist., Chairperson of the Committee on the part of
the House, that the bill ought to pass.
AN ACT DEFINING "MORTGAGE LOAN" FOR PURPOSES OF
CERTAIN NOTICE PROVISIONS RELATING TO FLOOD DAMAGE
AND INSURANCE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 49-7b of the 2026 supplement to the general statutes 1
is repealed and the following is substituted in lieu thereof (Effective July 2
1, 2026): 3
(a) For purposes of this section, "mortgage loan" means a loan that is 4
(1) secured by a first mortgage on one -to-four-family residential real 5
property located in this state, and (2) made for the purpose of financing 6
the purchase of such property. 7
[(a)] (b) Not later than ten days prior to the date of the closing in a 8
mortgage loan transaction, each creditor, as defined in section 49 -6a, 9
shall notify the mortgage loan applicant, in writing, that: (1) Standard 10
homeowners insurance policies do not cover flood damage and related 11
losses; (2) flood damage to property may occur regardless of whether 12
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the real property is located in a designated flood zone; and (3) the 13
applicant may wish to consult a licensed insurance producer or surplus 14
lines broker concerning the availability and benefits of obtaining flood 15
insurance. 16
[(b)] (c) The notice required by subsection [(a)] (b) of this section shall 17
be written in plain language and signed and dated by the mortgage loan 18
applicant to acknowledge receipt of such notice. Each creditor shall keep 19
and maintain a copy of such notice with the mortgage loan applicant's 20
mortgage records. 21
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2026 49-7b
BA Joint Favorable
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HB5317 / File No. 111 3
The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact: None
Municipal Impact: None
Explanation
The bill limits flood notice requirements to mortgage loan applicants
for only certain types of mortgages. This has no fiscal impact to the state
or municipalities as they are not parties to mortgage loans.
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HB5317 / File No. 111 4
OLR Bill Analysis
HB 5317
AN ACT DEFINING "MORTGAGE LOAN" FOR PURPOSES OF
CERTAIN NOTICE PROVISIONS RELATING TO FLOOD DAMAGE
AND INSURANCE.
SUMMARY
This bill narrows the circumstances under which a creditor must give
a mortgage loan applicant a plain language notice about flood
insurance. Current law requires creditors to do so at least 10 days before
closing on any mortgage loan transaction. The bill limits this notice
requirement to apply only when the mortgage loan application is to
finance buying a one-to-four family residential real property that is
secured by a first mortgage.
Creditors subject to the law , unchanged by the bill, include state or
federal banks, credit unions, mortgage lenders, correspondent lenders,
or other financial institutions.
By law, unchanged by the bill, the written notice must state that (1)
standard homeowners ’ policies do not cover flood related losses, (2)
flood damage can happen regardless of whether the property is in a
designated flood zone, and (3) the applicant may want to consult an
insurance producer or surplus lines broker about flood insurance
availability and benefits.
EFFECTIVE DATE: July 1, 2026
COMMITTEE ACTION
Banking Committee
Joint Favorable
Yea 13 Nay 0 (03/10/2026)