CT SB00395

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 a signed certification from both the applicant and a counselor confirming the applicant completed reverse annuity mortgage loan counseling, including the session date, format (in-person or telephone), and contact information for both parties.

Lenders must obtain a signed certification from both the applicant and loan originator confirming the loan origination meeting occurred, specifying whether it was conducted in person or by telephone, with meeting date and contact information included.

At least one certification (either counseling or loan origination) must confirm that the session was conducted in person.

Violations are considered unfair or deceptive trade practices under Connecticut law, and lenders must maintain all certifications in an accurate, reproducible, and accessible format for the loan's duration; effective October 1, 2018.