To prohibit authorized lenders of home equity conversion mortgages from requiring seniors to purchase an annuity with the proceeds of a reverse mortgage, and to provide other consumer protections to reverse mortgage borrowers, and for other purposes.
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To prohibit authorized lenders of home equity conversion mortgages from requiring seniors to purchase an annuity with the proceeds of a reverse mortgage, and to provide other consumer protections to reverse mortgage borrowers, and for other purposes.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVES
April 10, 2008
Ms. LEE introduced the following bill; which was referred to the Committee on Financial ServicesCommentsClose CommentsPermalink
A BILL
To prohibit authorized lenders of home equity conversion mortgages from requiring seniors to purchase an annuity with the proceeds of a reverse mortgage, and to provide other consumer protections to reverse mortgage borrowers, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
(1) by striking subparagraph (B) of subsection (d)(2) and inserting the following new subparagraph:CommentsClose CommentsPermalink
`(B) has received adequate counseling by a third party (other than a reverse mortgage lender, servicer or investor, or an entity engaged in the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product) as provided in subsection (f);';CommentsClose CommentsPermalink
(2) by striking the first sentence of subsection (f) and inserting the following new sentence: `The Secretary shall provide or cause to be provided and paid for by entities other than a reverse mortgage lender, servicer or investor, or an entity engaged in the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product the information required in subsection (d)(2)(B).';CommentsClose CommentsPermalink
(5) by striking subsection (l), as so redesignated, and inserting the following new subsection:CommentsClose CommentsPermalink
`(l) Funding for Counseling- The Secretary may, in his or her discretion, use a portion of the mortgage insurance premiums collected under the program under this section to adequately fund the counseling and disclosure activities required under subsection (f), including counseling for those homeowners who elect not to take out a home equity conversion mortgage.'; andCommentsClose CommentsPermalink
`(1) IN GENERAL- Not later than 6 months after the date of the enactment of the Reverse Mortgage Proceeds Protection Act, the Secretary shall, in consultation with other relevant Federal departments and agencies, prescribe regulations to help protect elderly homeowners from the marketing of financial and insurance products not in the interest of such homeowners, including the marketing or sale of an annuity as a condition of obtaining any home equity conversion mortgage.CommentsClose CommentsPermalink
`(2) CONSULTATION- In developing the regulations required under paragraph (1), the Secretary shall consult with consumer advocates (including recognized experts in consumer protection), industry representatives, representatives of counseling organizations, and other interested parties.'.CommentsClose CommentsPermalink
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U.S. Congress - Text of H.R.5758 as Introduced in House Reverse Mortgage Proceeds Protection Act
