Category: Legislation

Earlier this week at the American Bankers Association’s Regulatory Compliance Conference in Orlando, Fl, Comptroller of the Currency’s, John Dugan gave a speech about the need for “Consumer Protections for Reverse Mortgages”. When the press got wind of a few parts of the speech, the headlines started hitting national papers like the Wall Street Journal, […]

Reverse mortgages could be the next subprime mortgage product to experience rapid growth while taking advantage of a vulnerable segment of the population, top U.S. bank regulator John Dugan said on Monday. Dugan, who heads the Office of the Comptroller of the Currency and supervises some of the nation’s largest banks, said regulators are crafting […]

When I read stories like Sentence for swindling mom? Go directly to jail, I can understand why state legislators are concerned about people using reverse mortgages to take advantage of seniors. Larry Bekis took out $100,000 from his mothers home using a reverse mortgage but failed to use the money to pay $49,000 in nursing […]

Earlier this week, Vermont’s Governor Jim Douglas singed H 222 which limits the availability of reverse mortgages to seniors in the Green Mountain State.  H 222 contains several provisions to protect seniors who purchase certain types of lending and insurance products. H 222 states that only HUD approved financial institutions can issue reverse mortgages and […]

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 […]

Several bills were sent to Minnesota Governor Tim Palenty last week and one of those was SF 489/FH 528 which was passed by the Senate and House by a vote of 65-2 and 97-31 respectively. The bill includes several important changes which could negatively impact reverse mortgage lenders in the state of Minnesota.  Beth Paterson […]

The California Assembly Committee on Banking and Finance approved AB 329 with a few amendments, one of which strikes 30 day right of recession from the bill.  Next, AB 329 will be voted on by the full assembly. Other than the elimination of the 30 day recession, the following amendments were added: Cross Selling (B) […]

One of the things RMD readers asked for more of in our last survey, was an increase in updates regarding reverse mortgage legislation, so I’m doing my best to stay up to date.  In Minnesota, Beth Paterson from Reverse Mortgages SIDAC has been playing an important role and was nice enough to send me an […]

Senator Claire McCaskill voiced her concerns over issues related to reverse mortgages at a Senate Proceeding last week.  She estimates that there will be 200,000 new reverse mortgages this year and believes it has the potential to become a huge liability to the American taxpayer if more guidelines aren’t put in place.  One area she […]

We’ve got some good news on the reverse mortgage legislation front.  Earlier this week Washington state Governor Chris Gregoire signed into law a bill which will allow non bank lenders to originate reverse mortgages. HB 1311 was introduced earlier this year to lift the restrictions from SB 6471 which effectively banned non-bank lenders who are […]