California Reverse Mortgage Bill Pulled by Sponsor

California Assembly Member Jose Medina, sponsor of A.B. 553, pulled his bill from the legislative approval process.

The legislation would have mandated new requirements for California reverse mortgage borrowers. As it was originally written, the bill would have required lenders to provide a suitability checklist along with a California specific disclosure to prospective borrowers seven days in advance of borrowers getting their required RM counseling.

After Medina met with members of NRMLA (National Reverse Mortgage Lenders Association) national reverse mortgage lenders assoiciation it was pointed out to Mr. Medina that the proposals in his bill are all ready currently part of the procedural process enforced on a National basis and mandated by HUD.

Although NRMLA agrees with the spirit of Medina’s Bill, which is to protect consumers, at the same time NRMLA pointed out that seniors all ready attend a counseling session prior to meeting with a lender…And additionally, California law currently requires a similar disclosure to the one proposed in A.B. 553.

All in all the upshot is that Medina’s California Reverse Mortgage bill was redundant to say the least, and has now been pulled from further consideration by the legislature.

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