State/Local Legislation

Below is a tracking chart showing all legislation introduced so far this year by state legislatures that impacts reverse mortgages.

NRMLA, in concert with government affairs staff from member companies, is meeting with state officials to address legislation introduced in Arizona, Florida and Maryland that impacts reverse mortgage lenders.

The NRMLA State Steering Committee has tackled several emerging issues in recent weeks. To begin with, new legislation from California presents some compliance challenges for reverse mortgage professionals as well as counselors.

NRMLA Seeks Your Questions Concerning the NEW California Reverse Mortgage Elder Protection Act of 2009.

Governor Schwarzenegger has signed into law AB 329, which amends provisions of the California Civil Code currently regulating reverse mortgages, to enact the Reverse Mortgage Elder Protection Act of 2009.

The following memo was prepared by NRMLA's outside general counsel Weiner, Brodsky, Sidman, Kider, PC, and presented at the 2009 NRMLA Policy Conference in Washington, D.C.

NRMLA is pleased to announce that Minnesota Governor Tim Pawlenty vetoed legislation that would have had a chilling effect on legitimate reverse mortgage business activity.

On April 21, 2009, Governor Chris Gregorie signed reverse mortgage legislation (HB 1311) into Washington law aimed at both correcting certain unintended consequences arising from the prior passage of S.B. 6471 in 2008, as well as providing a comprehensive reverse mortgage statutory scheme to protect Washington State seniors.

This year, more states are introducing reverse mortgage legislation focusing on licensing, counseling, disclosure and suitability issues.

In an official signing ceremony on June 20, 2008 Governor Carcieri signed into law reverse mortgage legislation aimed at protecting senior homeowners.

Washington state recently passed legislation that may impact non-depository lenders, as well as the correspondents, subsidiaries and affiliates of depository lenders who make reverse mortgage loans in that state.

After a lot of work both last year and this year, Rhode Island is moving forward with legislation that is expected to be signed by Governor Carcieri in the next few weeks.

As we engaged with the industry on fixed rate HECMS, we were pleased that FHA issued Mortgage Letter 2008-08 regarding fixed rate HECM loans. We want to clarify a few important points.

California's recent enactment of Senate Bill 1609, which takes effect on January 1, 2007, should be a wake-up call for our industry. Reverse mortgages are slowly, but surely, attracting the attention of state policymakers, who may or may not know exactly how a reverse mortgage works.