Reverse mortgage industry participants and nationwide are launching a campaign to gain an affirmative vote for the Home Equity Conversion Mortgage for Purchase within the state.
Texans will vote on legislation to allow the loan in a statewide vote on November 2.
The official campaign, Texans for Proposition 5, will kick off officially on Tuesday, September 10, in conjunction with Reverse Mortgage Day of Texas, held in Austin.
“Because of Texas’ highly protective homestead laws and constitutional standards, reverse mortgages are one of the most consumer friendly mortgage loans in the country,” said Scott Norman, President of Texans for Proposition 5. “Supporting Proposition 5 will be a vote to strengthen those protections.”
Proposition 5 calls for an amendment to the state constitution that will authorize the HECM for Purchase program in Texas—the only state where the loan is not currently permitted. Additionally, the legislation includes new language that would require consumer disclosures be presented to reverse mortgage borrowers 12 days before the closing of a reverse mortgage loan.
The legislation has received support from industry groups and consumer groups including AARP. It passed through the state legislature by a vote of 170-1.
Written by Elizabeth Ecker