BOSTON–A new law signed by Governor Charlie Baker simplifies the “counseling” requirement associated with most HECM/Reverse Mortgage loans. The new bill, signed by the governor April 24, 2020, opens the door for telephone and virtual online video counseling to take place during the COVID-19 crisis.
Previously a face to face meeting between borrower and counselor was required. Given the “social distancing” recommendations this had become impossible.
“We are delighted that seniors, age 62 plus, can now move forward with HECM/Reverse Mortgages and receive the financial security and flexibility they need,” noted George Downey, CEO of Harbor Mortgage based in Braintree, MA and a board member of the National Reverse Mortgage Leaders Association, who championed the bill along with a coalition of other stakeholders including the Massachusetts Mortgage Bankers Association.
The new legislation was part of the “An Act providing for a moratorium on evictions and foreclosures during the COVID-19 Emergency” bill H4647.
Downey continued, “Home equity, recognized now as ‘housing wealth’, has become an important and valuable resource to improve financial planning and extend retirement security. If, how, and when to use it is a key question. Every situation is different and the options are increasing as new programs emerge to meet the changing times.”
