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Proposed laws in California would offer new protections to reverse mortgage seekers 2009-12-29 Two bills set to take effect in California on January 1 will increase consumer protections and help seniors applying for reverse mortgages, the Sacramento Bee reported this week. Peter Bell, president of the National Reverse Mortgage Lenders Association, was quoted as saying that the laws are "a good and better approach to protecting senior citizens." Only one law, AB329, aims to protect seniors specifically. It will mandate independent financial counseling for people who apply for reverse mortgages - similar to what the government requires for home equity conversion mortgages - and require the completion a financial checklist before final approval is granted. The other law, AB260, applies to people of all ages, the Bee said. It requires mortgage brokers to offer clients the best loan for their situation. The reverse mortgage bill was created by an assemblyman from Los Angeles, Mike Feuer, and backed by the California Commission on Aging and the California Alliance for Retired Americans. "I decided it was important for seniors to be more informed," the paper quoted Feuer as saying. As seniors discover that their retirement savings have been diminished, reverse mortgages are becoming more attractive. Consumer protections like California's will provide seniors with the information they need to make a smart decision.  |
