A sweeping mortgage reform bill is expected to pass the state Senate Wednesday.
The comprehensive bill aims to stave off the subprime mortgage lending crisis in Connecticut.
Senator Bob Duff, a co-chair of the General Assemblyâ€™s Banks Committee, designed the bill that will create new regulations on mortgage lenders and brokers, a mediation program for those facing foreclosure and an economic assistance program within the Connecticut Housing Finance Authority.
â€œIt took a long time to negotiate this bill. Keep in mind weâ€™ve done in ten weeks what congress has yet to do in a year and a half. But what we have is three bills in one. Itâ€™s very comprehensive. Itâ€™s very progressive. I think itâ€™ll be used as a model throughout the rest of the country.â€
Connecticut has the10th highest foreclosure rate in the nation.
The $141 million bill will be funded through existing money with the Connecticut Housing Finance Authority, $50 million from bonds and money from the special banking fund. No money from the stateâ€™s general fund will be used.
Governor Rell is expected to sign the legislation.