NRMLA opposes New Jersey reverse mortgage counseling bill

"The group believes that proposed requirements for reverse mortgage counseling agencies to be physically located in the state, and for their services to be conducted in person, will create a severe and unnecessary chilling effect on seniors' ability to obtain a reverse mortgage in New Jersey."

"NRMLA also opposes the bill's plan to create a seven-day recission period after the closing of a Home Equity Conversion Mortgage (HECM). Irwin wrote that this rule would create a needless and burdensome extension beyond the 3-day rescission period already mandated for reverse mortgages under federal law."

"Pursuant to FHA's requirements, HUD-approved national intermediaries and HUD-approved agencies that provide reverse mortgage counseling services over the phone must always be included on the list. NRMLA said it appears that only two counseling agencies located in New Jersey are HUD-approved providers today."

The National Reverse Mortgage Lenders Association opposes a New Jersey bill requiring reverse mortgage counseling agencies to be physically located in the state and conduct services in person. The organization argues these requirements create unnecessary barriers to seniors obtaining reverse mortgages and conflict with federal HUD regulations. The bill also proposes a seven-day rescission period, extending beyond the federally mandated three-day period for HECMs. NRMLA notes that only two HUD-approved counseling agencies currently operate in New Jersey, violating federal requirements for at least five agencies. The association contends that seniors should have flexibility in choosing between in-person and phone counseling options.

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