CT SB00579

Entities including Connecticut banks and credit unions cannot accept reverse annuity mortgage loan applications or assess fees without informing applicants of counseling requirements and providing a list of at least five HUD-approved independent housing counseling agencies.

Lenders must receive signed certification that the prospective applicant has completed counseling with an independent housing counseling agency that receives no compensation from the lender or loan originator.

Lenders must obtain signed certification that either the loan origination or counseling session was conducted in person, with any non-in-person counseling conducted by telephone.

Certifications must be signed by both the applicant (or authorized representative) and the counselor or loan originator, include the date of the meeting, and contain names, addresses, and phone numbers of both parties; lenders must maintain these certifications for the life of the loan.

Violations are deemed unfair or deceptive practices under Connecticut's consumer protection statutes and become effective October 1, 2017.