Reverse Mortgage Face-to-Face Counseling Legislation Halted in CT

The Connecticut legislature adjourned for the year before lawmakers could pass a bill that would have required the reverse mortgage closing or counseling session be conducted in-person.

Under this legislation proposed in the state’s Senate, lenders would have been required to provide a list of five HUD-approved reverse mortgage counselors to every prospective client, prohibited from paying for the counseling session, and responsible for maintaining the signed certification in an accurate, reproducible and accessible format for the term of the loan.

While the Connecticut Senate passed Senate Bill 579 on June 1, the House of Representatives passed its own version of the legislation (House Bill 6989) that did not include the in-person requirements. But the legislative session ended before the two houses could agree on a common bill, and thus both bills died.