Massachusetts In-Person Counseling Requirements

Massachusetts is one of a handful of states, the others being California and North Carolina, that require prospective reverse mortgage borrowers to be counseled face-to-face.

In-person counseling requirements apply to “mortgagors,” which are defined as applicants for a reverse mortgage who at the time of application: (1) have a gross income of less than 50 percent of the area median income, as periodically determined by HUD; and (2) possess assets, excluding a primary residence, valued at less than $120,000. 

View a copy of HUD’s median income tables, which are sorted alphabetically by Metropolitan Statistical Area (MSA).

If an applicant meets the definition of “mortgagor,” before a reverse mortgage is closed, the lender must receive written certification of in-person counseling relating to the appropriateness of the reverse mortgage.  The written certification must come from a counselor with a third party organization that is approved by the Massachusetts Executive Office of Elder Affairs. Massachusetts regulations implementing the Act indicate that for HECM products, the HECM counseling certificate promulgated by HUD can be used to satisfy the written certification requirement.

View more information from the Massachusetts Division of Banks on face-to-face counseling requirements.