SF3818 Summary

• Requires reverse mortgage loan servicers to send copies of written communications regarding delinquencies, defaults, and unfulfilled obligations to a borrower-designated third-party designee by first-class mail.

• Mandates servicers send the same communications to an independent counseling agency identified in the loan agreement when a third-party designee is designated.

• Requires lenders to provide prospective borrowers with an authorization form (in at least 14-point font) during counseling that allows them to designate a third party and independent counseling agency to receive loan-related communications.

• Establishes a $1,000 civil penalty payable to the borrower if a lender fails to comply with counseling and certification requirements.

• Applies to all reverse mortgage loans originated on or after August 1, 2020.