Massachusetts FHA Lenders Get Clarity on Senior Reverse Mortgage Counseling

A new face-to-face counselingrnrequirement for seniors seeking a reverse mortgage loan is no longer operative inrnMassachusetts after surviving on the books for three whole days.   Almostrnall reverse mortgages are the FHA Home Equity Conversion Mortgages or HECMsrnwhich allow homeowners over the age of 62 to pull equity out of their homes inrna lump sum or installments.  </p

The counseling requirement was mandatedrnby the State’s Great and General Court in July and went into effect on August 1.  However, around the time the requirementrnpassed the legislature so did a second law delaying its implementation untilrnAugust 2014.  As of August 1 the governorrnhad not signed either piece of legislation allowing the counseling requirementrnto become law by default but not the legislation allowing the delay.   Therndual legislation and the confusion surrounding their implementation werernexplained in detail here</aon August 2.</p