Bill Protecting Reverse Mortgage Applicants Advances
Legislation aimed at better protecting consumers who are applying for reverse mortgages is moving through the Connecticut General Assembly.
The Senate Tuesday unanimously approved a bill that expands the counseling and certification requirements for such mortgages, which allow homeowner to convert accumulated home equity into cash. The proposal now awaits action in the House of Representatives.
Democratic Senate President Pro Tempore Martin Looney of New Haven says he has received an alarming number of reports of "reverse mortgage lenders preying on seniors in Connecticut."
The bill requires reverse mortgage lenders to inform prospective applicants of counseling requirements and provide a list of federally approved, independent housing counseling agencies. Lenders would have to obtain a signed certification from a prospective applicant that they received counseling in-person or by telephone.
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