Reverse Mortgage Cooling Off Bill: What to Know
We just recently found out that the beautiful state of California has passed a new legislation pertaining to the Reverse Mortgage program. As I read the bill I ask myself is this a good thing or is this just another step that prolongs the already long process of obtaining a Reverse Mortgage. The legislation is called the AB 1700 or, in layman’s terms: The Reverse Mortgage Cooling Off Bill. The bill requires a reverse mortgage worksheet to be presented to and signed by all borrowers during the counseling process and then you have to wait a period of seven days in order for the lender to accept your loan application.
If you want to by-pass this new legislation then you have to apply before Jan 1, 2015 as this is the date when the bill will go into effect.
I would like to hear your opinions regarding this new legislation and what your thoughts on this topic are. Comment on the blog or email us at firstname.lastname@example.org
According to this article on Reverse Mortgage Daily.com, the reverse mortgage cooling off bill is in place for protection:
Under the new law, the worksheet includes a list of items that the borrower is advised to consider and discuss during the counseling process. Either the lender or the counseling agency must provide the worksheet guide to the borrower, depending on whether the borrower contacts the lender prior to counseling. The borrower must receive the worksheet before the counseling session takes place.
The worksheet must be signed by both the borrower and counselor and returned to the lender with the counseling certificate, the language specifies.
Read more: http://reversemortgagedaily.com/2014/10/05/california-governor-passes-reverse-mortgage-cooling-off-bill/