Massachusetts laws
MGL c. 167E, § 7 Reverse mortgage loans
Includes requirement for 7 day right of rescission.
MGL c. 167E, § 7A Reverse mortgage loan requirements
Before the closing of any reverse mortgage loan, the lender must receive "written certification from a counselor with a third-party organization that the mortgagor has received counseling in person, by synchronous real-time video conference or by telephone relative to the appropriateness of the loan transaction from the third party organization and has completed an approved counseling program offered by the third party organization."
MGL c. 171, § 65C Credit unions: reverse mortgages
MGL c. 171, § 65C-1/2 Credit unions: reverse mortgage loan requirements
MGL c. 183, § 67 Reverse mortgage loans on residential property; requirements
Massachusetts regulations
209 CMR 32.33 Requirements for reverse mortgages
"Compliance with 12 CFR 1026.33 constitutes compliance with 209 CMR 32.33."
209 CMR 55.00 Reverse mortgage loans
Federal laws and regulations
Laws
12 USC § 1715z-20 Insurance of home equity conversion mortgages for elderly homeowners
Regulations
12 CFR 226.33 Requirements for reverse mortgages (Federal Reserve Board)
12 CFR 1026.33 Requirements for reverse mortgages (Consumer Financial Protection Bureau)
24 CFR 206.1-206.211 Home equity conversion mortgage insurance
Selected cases
Bennett v. Donovan, 703 F.3d 582 (2013)
The U.S. Court of Appeals for the District of Columbia ruled that HUD’s regulation defining the conditions under which it would insure a reverse-mortgage agreement was inconsistent with the applicable statute, and failed to protect the plaintiffs (surviving spouses of holders of reverse mortgages) from foreclosure as a result of the death of the spouse named on the mortgage note. The Court remanded the case to the District Court to determine an appropriate remedy for the problem.
James B. Nutter & Co. v. Murphy, 478 Mass. 664 (2018)
A reverse mortgage did not contain the formal language of "statutory power of sale," but only said that the company could “invoke the power of sale and other remedies permitted by applicable law." The SJC held that, given that this was a reverse mortgage, and not a traditional mortgage, "where the lender cannot hold the borrower personally liable for the debt, and where the lender’s only recourse on default is to obtain repayment through a foreclosure sale," "the only reasonable and practical interpretation of the mortgage was that it incorporated the statutory power of sale," allowing the lender to foreclose the lien.
Web sources
General info, pros and cons
Approved reverse mortgage lenders and loan programs, Mass. Division of Banks.
"The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender."
Home equity conversion mortgages for seniors, U.S. Department of Housing and Urban Development.
Provides links to detailed information for seniors and lenders, including links to HECM counselors, HECM lenders, and frequently asked questions.
Reverse mortgage lending for banks, credit unions, and lenders, Mass. Division of Banks.
Information for banks, credit unions, and lenders seeking to make reverse mortgage loans in the Commonwealth.
Reverse mortgage information for consumers, Mass. Division of Banks.
Provides information on issues to consider and steps that must be taken to get a reverse mortgage loan.
Reverse mortgage loans, U.S. Consumer Financial Protection Bureau.
CFPB provides general consumer information about reverse mortgages; the agency publishes Consumer Advisories, and has put together a Discussion Guide that reviews key concepts of reverse mortgages. Download Know your rights and responsibilities.
The reverse mortgage: Pros and cons, Debt.org.
A reverse mortgage loan can help some older homeowners meet financial needs, but can also jeopardize their retirement if not used carefully.
Reverse mortgages, Federal Trade Commission.
Foreclosure
Foreclosure of reverse mortgages, Nolo.
Information on when a lender or servicer can foreclose on a reverse mortgage. Home Equity Conversion Mortgage (HECM) insurance “protects the lender, not the borrower. It guarantees that the lender will be repaid in full.”
Heirs and spouses
If I get a reverse mortgage, can I leave my home to my heirs?, Nolo.
Reverse mortgages protections for nonborrowing spouses, Nolo.
Reverse mortgage rules might be able to protect you if your spouse passes away, but you aren't named as a co-borrower on the reverse mortgage.
What happens to my reverse mortgage when I die?, U.S. Consumer Financial Protection Bureau.
"Reverse mortgage loans typically must be repaid, usually by selling the home, when the last borrower dies. However, non-borrowing spouses may be able to stay in the home if they meet certain criteria."
Print sources
Corpus juris secundum, West, with supplement.
59 C.J.S. Mortgages § 667: Right to foreclose; effect of death of mortgagor – Reverse mortgages. Available through Document Delivery with current supplement.
Elder law: Advocacy for the aging, 2nd ed., West, with supplement.
- Chapter 22, sections 42-52: Reverse mortgages
- Chapter 22, sections 24-34: Reverse mortgage (2026-2026 edition, available through Document Delivery)
Estate planning for the aging or incapacitated client in Massachusetts, 5th ed., MCLE, 2021.
Chapter 15: Nationwide reverse mortgage programs.
Massachusetts elder law, 3rd ed., LexisNexis, 2025. (eBook available with library card)
Section 14.06: Reverse mortgages.
Mortgage lending: Loan origination, preemption, and litigation, 4th ed., NCLC, 2024.
Massachusetts Practice
vol. 35-36A (Consumer law), 4th ed., Thomson Reuters, 2021 with supplement.
- Section 8:37
- Sections 10:66-10:69
- Section 10:76
- Section 28:55
vol. 56 (Elder law), Thomson/West, 2025-2026.
- Section 4:20: Proceeds from reverse mortgage loans are exempt from being countable for SSI eligibility purposes
vol. 28 (Real estate law, with forms), Thomson Reuters, 2026-2026.
- Section 9:28
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| Last updated: | February 19, 2026 |
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