Massachusetts reverse mortgage lenders and counseling agencies are continuing to rally support an en effort ensure a face-to-face counseling mandate does not take effect for all prospective reverse mortgage borrowers.
Legislation that would mandate face-to-face counseling for all borrowers has been delayed since 2010, with several hurdles—the most recent of which raised attention this week.
In July, it appeared there would be a delay in the rule after both Massachusetts legislative houses passed an amendment to Gov. Deval Patrick.
Then in August, instead of signing the bill into effect, Gov. Patrick sent it back to be amended, thus implementing the face-to-face requirement temporarily.
Now, it appears that certain revisions to the legislation could possibly push the delay in the requirement for credit unions only—and not bank and non-bank lenders.
In the meantime, counseling fees have risen as high as $250 per session, one lender tells RMD.
Research presented during the legislative proceedings have indicated a shortage of counseling agencies within close proximity to many of Massachusetts’ western cities and towns; with the majority of counseling agencies located in Greater Boston.
Written by Elizabeth Ecker