CT SB00163

Entities including Connecticut banks and credit unions cannot accept reverse annuity mortgage applications or assess fees unless they inform applicants of counseling requirements and provide a list of at least five HUD-approved independent housing counseling agencies.

Lenders must receive signed certification from the applicant or authorized representative confirming the applicant has completed counseling from an independent housing counseling agency with no compensation to the agency from the lender or loan originators.

Reverse mortgage originations and counseling sessions must be conducted in person or by telephone, with signed certifications from both parties including the date, names, addresses, and telephone numbers of participants.

Lenders must maintain counseling and origination certifications in an accurate, reproducible, and accessible format for the duration of the reverse mortgage loan.

Violations of these protections are classified as unfair or deceptive trade practices under Connecticut law, effective October 1, 2016.