Massachusetts Opens State Reverse Mortgage Site
The state of Massachusetts has launched a reverse mortgage site, www.mass.gov/reversemortgage.
“Reverse mortgages are extremely complicated products and consumers, beyond the due counseling, should manufacture every effort to obtain independent legal and financial advice when considering one,” said Daniel C. Crane, Undersecretary of Consumer Affairs and Business Regulation. “It is urgent to appreciate the costs associated with these loans and that, by duration, the loan will deplete the accumulated equity in your home.”
To help consumers, the Massachusetts site has data outlining what prospective borrowers need to know and a list of approved lenders and programs.
The site plus has info for lenders. For instance, the list of called for protections for Massachusetts borrowers includes:
___Mandatory participation in a reverse mortgage counseling session approved by the Commonwealth’s Executive Office of Elder Affairs (List of Approved Counseling Services). Verify receipt of the counseling
___Seven day “cooling off” period following a consumer’s acceptance of a commitment, during which a consumer cannot be mandatory to close or proceed with the loan transaction.
___Required plain language disclosures of specific mortgage loans terms.
___No prepayment penalties or restrictions permitted.
___Disclosure requirement and acknowledgment of contingencies which could force a sale of the property securing the loan.
___Inclusion of a disclosure statement that a reverse mortgage loan has estate and tax planning consequences and may affect eligibility for government benefits and that applicants are advised to seek appropriate advice.
The Massachusetts site includes a lot of data which should interest reverse mortgage borrowers generally and not just state residents. It’s a good resource, and it’s a concept which other states should adopt. Stop by and take a look.
Orginal post by Peter G. Miller
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