Bill > HB1196

This bill makes several revisions to the Commercial Law - Credit Regulation - Reverse Mortgage Loans Act in Maryland. Key provisions include: - Requiring borrowers of reverse mortgage loans to be at least 60 years old and occupy the dwelling as their principal residence. - Mandating disclosures from lenders or arrangers of financing to prospective borrowers at specific times, including details on adjustable interest rates, a list of counseling agencies, and a checklist of issues to discuss with a counselor. - Requiring borrowers to meet with a counseling agency before signing a reverse mortgage application to discuss key implications of the loan. - Restricting lenders and arrangers from requiring borrowers to purchase certain financial or insurance products as a condition of obtaining the loan. - Establishing financial assessment requirements for lenders to evaluate the borrower's ability to comply with the loan terms. - Providing borrowers a 7-day period after accepting a written loan commitment before being required to close or proceed with the loan. - Specifying that reverse mortgage loan payments are treated as loan proceeds, not income, for means-tested government aid programs.

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http://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1196?ys=2021RS