Sec.36a-744-7. Compliance and investigation

(a) In order to provide for adequate records by which to monitor compliance with the provisions of the act, each financial institution shall retain all applications subject to the act and sections 36a-744-1 to 36a-744-8, inclusive, of the Regulations of Connecticut State Agencies, and other materials made part of such applications or which are used to evaluate such loans whether or not the applications are approved, for a period of twenty-five months after the date on which action is taken on the applications. Included in the retained materials shall be the notification of action taken and the statement of specific reasons for adverse action, as required by Regulation B (12 C.F.R. Part 202) of the Board of Governors of the Federal Reserve System, Section 202.9. Such information may be retained in original form or a copy thereof, and shall, in accordance with the provisions of Section 36a-21 of the Connecticut General Statutes and Section 36a-742 of the act, be made available to the commissioner and to appropriate federal authorities for the purpose of monitoring compliance with provisions of the act, and remain otherwise confidential.

(b) When adverse action is taken on applications, financial institutions shall inform the applicants of their right: (1) To know the reasons for denial or adjustment in the terms of a loan and (2) to register complaints with the commissioner. A financial institution satisfies the requirements of this subsection if the notification of action taken as required by Regulation B (12 C.F.R. PART 202) of the Board of Governors of the Federal Reserve System, Section 202.9, includes the following statement:

THE CONNECTICUT HOME MORTGAGE DISCLOSURE ACT PROHIBITS DISCRIMINATION AGAINST HOME PURCHASE LOAN, HOME IMPROVEMENT LOAN OR OTHER MORTGAGE LOAN APPLICANTS SOLELY ON THE BASIS OF THE LOCATION OF THE PROPERTY TO BE USED AS SECURITY. THE AGENCY WHICH ENFORCES COMPLIANCE WITH THIS LAW IS:

DEPARTMENT OF BANKING

260 CONSTITUTION PLAZA

HARTFORD, CONNECTICUT 06103

IF YOU BELIEVE YOU HAVE BEEN UNFAIRLY DISCRIMINATED AGAINST, YOU MAY FILE A WRITTEN COMPLAINT WITH THE COMMISSIONER OF BANKING AT THE ABOVE ADDRESS.

(c) The commissioner shall conduct an investigation as provided for by section 36a-17 of the Connecticut General Statutes, upon receipt of a written complaint alleging specific violations of the provisions of the act or of sections 36a-744-1 to 36a-744-8, inclusive, of the Regulations of Connecticut State Agencies.

(d) The commissioner shall analyze the practices and actions of the financial institutions in the home financing area in relationship to its customers and to the housing needs and condition of the state. A report of the commissioner's findings shall be made annually to the governor pursuant to section 36a-14 of the Connecticut General Statutes.

(Effective December 19, 1990; TransferredApril 24, 1995; Amended January 30, 1996)