Document Update: Revised Print Configurations for New Connecticut Flood Damage and Insurance Notice (Cx29024)

We are updating the previously announced print configurations for Cx29024 “CT Flood Damage and Insurance Notice” in light of Connecticut House Bill 5208 having been signed into law on May 27, 2026. As noted in our prior announcement, the bill amends Conn. Gen. Stat. Ann. § 49-7b, effective July 1, 2026, and changes the timing for providing the notice based on loan type.

As amended, Conn. Gen. Stat. Ann. § 49-7b changes the timing of the notice based on loan type. The statute adds a definition of “mortgage loan” that references the existing definition of “open-end line of credit” and introduces a new definition of “home equity loan.” It also limits covered mortgage loans under this section to loans secured by one-to-four family residential real property located in Connecticut that are either under $1,000,000 or primarily for personal, family, or household use. Under the amendment, the notice must be provided at closing for mortgage loans that are “open-end line(s) of credit” or “home equity loans”, and the notice must be provided at least 10 days before closing for other covered “mortgage loans.”

The statutory references listed below identify the different loan type definitions and the amended changes from CT HB 5208.

Conn. Gen. Stat. Ann. § 49-7b now reads:

(a) For purposes of this section:

(1) "Mortgage loan" means any loan, including an open-end line of credit as defined in section 36a-760 or a home equity loan, that is (A) secured by a mortgage on one-to-four family residential real property located in this state, and (B) (i) in the amount of less than one million dollars, or (ii) primarily for personal, family or household use; and

(2) "Home equity loan" means a closed-end extension of credit, other than an open-end line of credit, (A) that is (i) secured by a mortgage on a one-to-four family residential real property located in this state that is the borrower's primary residence, (ii) made on the basis of the borrower's equity in such property, and (iii) not made to finance the acquisition of such property, and (B) under which the full principal amount is advanced at consummation and repaid over a specified term.

(a) (b) Not later than ten days prior to the date of the closing in a mortgage loan transaction, each Each creditor, as defined in section 49-6a, shall notify the mortgage loan applicant, in writing, that: (1) Standard homeowners insurance policies do not cover flood damage and related losses; (2) flood damage to property may occur regardless of whether the real property is located in a designated flood zone; and (3) the applicant may wish to consult a licensed insurance producer or surplus lines broker concerning the availability and benefits of obtaining flood insurance.

(b) (c) The notice required by subsection (a) (b) of this section shall be (1) written in plain language, and (2) signed and dated by the mortgage loan applicant to acknowledge receipt of such notice, and (3) provided to the mortgage loan applicant not later than (A) the date of closing if the mortgage loan is an open-end line of credit or home equity loan, or (B) ten days prior to the date of closing if the mortgage loan is not an open-end line of credit or home equity loan. Each creditor shall keep and maintain a copy of such notice with the mortgage loan applicant's mortgage records.

Conn. Gen. Stat. Ann. § 36a-760(8) states:

“Open-end line of credit” means a mortgage extended by a lender under a plan in which: (A) The lender reasonably contemplates repeated transactions; (B) the lender may impose a finance charge from time to time on an outstanding unpaid balance; (C) the amount of credit that may be extended to the consumer during the term of the plan, up to any limit set by the lender, is generally made available to the extent that any outstanding balance is repaid; and (D) none of the proceeds of the open-end line of credit are used at closing to (i) purchase the borrower's primary residence, or (ii) refinance a mortgage loan that had been used by the borrower to purchase the borrower's primary residence;

Based on our review, some ambiguity remains regarding when the definition of “home equity loan” applies. One example is a refinance of a purchase loan that includes a cash-out feature. Because part of that transaction could fall within the “home equity loan” definition while another part could be viewed as a refinance of the original “mortgage loan” purchase obligation, we are taking a conservative approach to the delivery requirement. Accordingly, for transactions treated as “home equity loans,” the notice will generate in Initial Disclosure packages to help satisfy the 10-day delivery requirement where it may apply. The configuration details for each scenario are set out below.

Print Condition Details for the Connecticut Flood Damage and Insurance Notice (Cx29024):

Default Print Conditions:

The default print conditions are:

• State Code (FI 2279) = Connecticut; and
• Print Connecticut Flood Damage and Insurance Notice (FI 194407) = Yes.

Clients may choose to print Cx29024 in Initial Disclosure packages, Closing packages, or both. This may be implemented either by importing FI 194407 or by requesting custom standard value field mappings for FI 194407. If FI 194407 is not set, the global standard value field mapping logic described below will determine whether Cx29024 prints.

Main Default Global Standard Value Mapping Logic:

Based on the revised definition of “mortgage loan” and the effective date of July 1, 2026, the new print trigger, “Print Connecticut Flood Damage and Insurance Notice” (FI 194407), will default to “Yes” through global standard value field mapping for Connecticut loans in ConformX when the following main conditions are met:

• Print Connecticut Flood Damage and Insurance Notice (FI 194407) is not set;
• State Code (FI 2279) = Connecticut;
• Closing Date On or After 07/01/2026 (FI 194350) = Yes; and
• Either Loan Amount Greater Than or Equal To 1 Million (FI 155247) = No or Occupancy Type (FI 1161) = PrimaryResidence or SecondHome.

Closing Package Default Global Standard Value Mapping Logic:

By default, only loans that meet the “open-end line of credit” definition will print in Closing packages. “Print Connecticut Flood Damage and Insurance Notice” (FI 194407) will be globally standard value mapped to “Yes” when:

• The main set of conditions listed above are true;
• Document Package Type (FI 18215) = Closing; and
• All of the following sets of conditions are also met:

Loan is a HELOC:

•     Heloc (FI 28859) = Yes; and

HELOC is not used to purchase the borrower's primary residence:

• Either Is this HELOC loan a purchase? (FI 27636) = No; or
• Occupancy Type (FI 1161) = SecondHome or Investment; and

HELOC is not refinancing a mortgage loan used to purchase the borrower's primary residence:

• Subject Property Zero or Negative Unpaid Balance Indicator (FI 97718) = Yes; or
• Previous Loan Purpose (FI 6686) = Cash Out Refinance or No Cash Out Refinance; or
• Previous Occupancy (FI 95479) = SecondHome or Investment.
  

Initial Disclosure Package Default Global Standard Value Mapping Logic:

Because the meaning of “home equity loan” is not clear in every scenario, and because there is no issue with providing Cx29024 earlier than 10 days before closing, Cx29024 will print in Initial Disclosure packages for mortgage loans that do not meet the “open-end line of credit” definition. As a result, “Print Connecticut Flood Damage and Insurance Notice” (FI 194407) will be globally standard value mapped to “Yes” for all other loans when:

• The main set of conditions listed above are true;
• Document Package Type (FI 18215) = Initial Disclosures; and
• Any of the following sets of conditions are also met:

Loan is not a HELOC:

• Heloc (FI 28859) = No; or

HELOC is used to purchase the borrower's primary residence:

• Is this HELOC loan a purchase? (FI 27636) = Yes or empty; and
• Occupancy Type (FI 1161) = PrimaryResidence; or

HELOC is refinancing a mortgage loan used to purchase the borrower's primary residence:

• Subject Property Zero or Negative Unpaid Balance Indicator (FI 97718) = No or empty; and
• Previous Loan Purpose (FI 6686) NOT = Cash Out Refinance or No Cash Out Refinance; and
• Previous Occupancy (FI 95479) = PrimaryResidence or empty.

These changes are available for testing on Stage and Stage 2 servers and will take effect on June 12, 2026. If you have questions about these changes, please contact Client Support at 1.800.497.3584.

LEG-3242
DR-220967

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third-party should consult with an attorney prior to embarking upon any specific course of action.