HB 5651 Summary

• Requires entities offering reverse annuity loans to provide prospective applicants with counseling requirements and a list of at least three HUD-approved independent housing counseling agencies before accepting applications or assessing fees.

• Mandates a seven-day waiting period from the date of counseling certification before any reverse annuity loan application can be accepted, with written notice provided in at least 12-point type and no right of waiver.

• Changes terminology throughout statutes from "reverse annuity mortgage" to "reverse annuity loan" for consistency in Connecticut General Statutes sections 8-265i, 17b-261l, 36a-265, 49-24a, 49-31k, 49-2, 36a-715, and 36a-3.

• Requires Connecticut Housing Finance Authority to implement procedures for reverse annuity loans to homeowners age 70 or older needing long-term care, with maximum six-year loan terms and prohibition on foreclosure while homeowner resides in the property.

• Amends Medicaid state plan to exclude funds derived from reverse annuity loans or home equity conversion loans from counting as income or assets for Medicaid eligibility, provided funds are held separately and not transferred for less than fair market value.