Bill > SB457

This bill proposes several revisions to the laws governing reverse mortgage loans in Maryland. Key provisions include: - Requiring borrowers to be at least 60 years old and occupy the dwelling securing the loan as their principal residence. - Mandating lenders or arrangers of financing to provide prospective borrowers with detailed disclosures about the loan terms, counseling agency information, and a checklist of issues to discuss with a counseling agency. - Requiring borrowers to meet with a counseling agency and receive information about the potential tax, eligibility, and estate impacts of a reverse mortgage loan before applying. - Limiting the fees and charges lenders can collect to the actual expenses incurred in originating and closing the loan. - Imposing additional requirements on lenders, such as assessing the borrower's financial capacity and not binding the borrower to the loan too soon after acceptance. - Specifying how reverse mortgage loans should be treated for purposes of eligibility for means-tested government aid programs. - Providing enforcement and penalty provisions for violations of the new requirements. The bill would apply only prospectively to reverse mortgage loans applied for on or after the effective date of October 1, 2021.

Budget and Finance

http://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0457?ys=2021RS