Submit a written request for approval to the Division of Banks, 1000 Washington Street, 10 th Floor, Boston, MA 02118-6400. Lenders not approved to make reverse mortgages in the Commonwealth must cease from making such loans until a written approval is obtained. Contact 617-956-1500 if you have questions.
The following list provides an overview of some of the information that must be submitted with the application:
- A detailed explanation of the type of program to be offered, including but not limited to whether the loan will be open end or closed and whether it will be a recourse or non recourse loan;
- An explanation of the interest rate and method of calculation;
- All preliminary disclosures provided to reverse mortgage borrowers including:
- A sample commitment letter indicating that the reverse mortgage borrower shall not be bound for 7 days after his acceptance, in writing, of the lenders written commitment; and
- A written statement that can be signed by the borrower, acknowledging receipt of the disclosures identifying all contractual contingencies that could force the sale of the real estate;
- A provision permitting the prepayment of a loan at any time without a penalty; and
- A statement notifying borrowers that that the mortgage has tax and estate planning consequences and may affect the levels of, or eligibility for, certain government benefits, grants, pensions and that the borrowers should also be advised to explore those matters with appropriate authorities.
- A copy of the closing documents to be signed at settlement. The documents should include a copy of the note, mortgage, and all disclosures.
Please be advised that the preceding information is not a comprehensive list of all documents that should be provided with the application for approval. Lenders seeking approval of a reverse mortgage program should review Massachusetts General Laws, Chapter 167E §7, which provides a detailed description of the statutory requirements.