Connecticut passed a bill requiring counseling in connection with reverse annuity mortgage loans. Under the bill, mortgage lenders and brokers (including state or federally chartered banks and credit unions) may not assess any fees or accept a final application for a reverse annuity mortgage loan until the lender or broker has received a signed certification stating that the applicant has received counseling from an independent housing counseling agency. The bill also requires lenders and brokers to inform prospective applicants of the counseling requirement, and in addition, provide a list of HUD approved independent housing counseling agencies and intermediaries. In addition, the bill prohibits a counseling agency from receiving any compensation (either directly or indirectly) from the lender or from any other person or entity involved in originating or servicing a reverse annuity mortgage loan. The bill becomes effective October 1, 2018.
See Connecticut General Assembly website for the full text of the Statutes:
https://www.cga.ct.gov/2018/ACT/pa/pdf/2018PA-00038-R00SB-00150-PA.pdf
