Massachusetts FHA Lenders Get Clarity on Senior Reverse Mortgage Counseling

by devteam August 14th, 2012 | Share

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

Governor Deval Patrick signed the lawrndelaying implementation on August 3 thus invalidating the three days the counselingrnrequirement was in force.  We have norninformation as to whether he also signed the law requiring the counseling orrneven if his signature is now required but FHA loan originators who were leftrnhanging during the last few weeks of July and the first three days or Augustrncan now stand down.  As for any seniorsrnwho received counseling during the short period of uncertainty, we doubt theyrnare any-the-worse for wear, and maybe even the better for it. 

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...