Industry Letter  Changes to Massachusetts reverse mortgage counseling requirements effective August 1, 2014

Date:	08/22/2014
Referenced Sources:	209 CMR 55.00: Reverse mortgage loans

The purpose of this notice is to remind approved reverse mortgage lenders in Massachusetts of the requirement for in person counseling for all reverse mortgage applicants who meet the designation of a “mortgagor” as defined in M.G.L. c. 167E s. 7A, M.G.L. c. 171 s. 65C ½ , and the Division’s regulation 209 CMR 55.00¹. 

The requirement for in person counseling for mortgagors became effective for reverse mortgage counseling sessions conducted on or after August 1, 2014. 

A list of approved reverse mortgage counselors may be found on the Massachusetts Executive Office of Elder Affairs’ website.

Should you have any questions relating to this matter, please contact Chief Director Amy Hassey at 617-956-1543 or via e-mail at [e-mail].

Sincerely,

David J. Cotney
Commissioner of Banks

¹ Mortgagor, an applicant for a reverse mortgage who at the time of application: (1) has a gross income of less than 50 percent of the area median income, as periodically determined by the United States Department of Housing and Urban Development; and (2) possesses assets, excluding a primary residence, valued at less than $120,000.