In-Person Reverse Mortgage Counseling Rule to Go Live in Mass., For Now

A bill that would postpone implementation mandatory face-to-face reverse mortgage counseling in Massachusetts is still awaiting a signature from Governor Deval Patrick as of Tuesday, meaning the rule will go into effect beginning Wednesday August 1, pending Gov. Patrick’s signature.

The bill passed through the state House and Senate in recent weeks, and went to the governor’s office Monday. The governor has 10 days to sign the bill into law once receiving it from the legislature. If he takes no action, the bill will become law after that time period, thus the rule would become postponed at that time until August 1, 2014. 

Without Patrick’s signature, the requirement applies to all mortgagors in Massachusetts, or those who have a gross income of less than 50% of the median income and possess assets valued at less than $120,000, the National Reverse Mortgage Lenders Association reminded its members Tuesday in an email notification. 

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In-state counseling agencies were preparing Tuesday to notify scheduled clients falling under the rule of the change, and to change their appointments to take place in person, as specified under the requirement. 

The governor still has the opportunity to veto the bill, but that action is not expected by NRMLA.

Written by Elizabeth Ecker

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  • Government mandated counseling in person just reduces the availability of the  RM solution for many seniors who will not do well in a more complicated entrance to the reverse mortgage. There’s enough regulation in this industry already. Let counselors take their place in the partnership with LOs to satisfy the counseling requirement. Let freedom ring.

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