CA SB660

Establishes that any person or entity recommending a reverse mortgage for compensation owes prospective borrowers a duty of honesty, good faith, and fair dealing.

Prohibits false, deceptive, or misleading statements; use of undue influence; origination for wrongful purposes; transactions with borrowers lacking capacity; and use as financial abuse of elders.

Prevents entities from evading these duties by dividing reverse mortgage transactions into separate parts or using subterfuge, including funding annuities or insurance products within one year of origination.

Does not limit other existing duties of lenders, brokers, and entities under other sections of law, including Section 2923.1 and Division 1.9 of the Financial Code.