CA AB1700

Prohibits lenders from accepting a reverse mortgage application or assessing fees until at least 7 days after the borrower receives HUD-approved counseling.

Replaces the written checklist requirement with a detailed reverse mortgage worksheet guide that borrowers must review and discuss with a counselor before applying.

Requires the reverse mortgage worksheet guide to address five key issues: impact on heirs, default risks, alternative options, use of proceeds for financial products, and effects on government assistance eligibility.

Mandates that both the counselor and borrower sign the worksheet guide, which must be returned to the lender along with counseling certification before loan approval.

Updates the required disclosure notice to warn borrowers that reverse mortgages are complex financial transactions and caution against using proceeds to purchase annuities or related financial products.