In California, reverse mortgage legislation that failed to win approval last year could get another chance in 2014. State Assemblyman Jose Medina reportedly is once again considering take-up of the bill, which spells out new protections for borrowers.
At the urging of the National Reverse Mortgage Lenders Association, which argued that a "suitability" checklist for applicants would weigh down the lending process while essentially duplicating disclosures already in place in California, Medina has amended the proposal. The updated bill would block lenders from accepting a reverse mortgage application or imposing any fees until seven days from the date of counseling and also would require them to hand out a reverse mortgage worksheet that the client must sign before applying for the loan.
The lawmaker could take the measure off the Assembly floor and push it through the banking committee instead; or he could present a new bill by Feb. 21 and work on passage for the remainder of the legislative session.