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NRMLA Offers Compromise to Protect Proprietary Reverse Mortgages

NRMLA Offers Compromise to Protect Proprietary Reverse Mortgages

NRMLA, with input from the Executive Committee, submitted comments this week to the sponsors of Oregon Senate Bill 534.

SB 534 caps the percentage of equity a reverse mortgage lender could receive upon a property sale or transfer.

Why it matters: While HECMs are exempted from the legislation, the bill as currently written would lead to the withdraw of proprietary reverse mortgages from the marketplace, says NRMLA.

What’s next: As a possible solution, NRMLA proposed that the sponsors amend the bill to incorporate language used in the Washington State Reverse Mortgage Home Equity Preservation Option.

  • “We believe that amending SB 534 in this manner will preserve a vibrant proprietary reverse mortgage market in Oregon, while also encouraging reverse mortgage product offerings which provide flexibility and the option for Oregon’s seniors to preserve a percentage of their home’s equity for their own benefit, or for the benefit of their heirs and devisees,” says NRMLA.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.