Late yesterday, Minnesota Governor Tim Pawlenty vetoed SF 489 which could’ve had negative consequences for both seniors and reverse mortgage lenders. The bill would’ve increased the rescission period for reverse mortgages to 10 days, added a suitability requirement, as well as increased restrictions on cross selling.
“The the intention of this bill is to protect borrowers from predatory lending practices, and I share that goal,” said a statement from Pawlenty. He added, “However, this legislation may trigger unintended consequences and increase costs to consumers.”
In his statement, he encourages the authors of the bill to develop legislation that protects consumers from predatory lending practices but does not limit the availability of this type of product in Minnesota. I couldn’t agree more. Below is a copy of the official statement.