HF 333 Summary

• Requires reverse mortgage loan servicers to send copies of written communications regarding delinquencies, defaults, and unfulfilled obligations to a borrower-designated third-party by first-class mail, effective August 1, 2021.

• Allows servicers to communicate with third-party designees via email about borrower's failure to respond to communications, and authorizes servicers to communicate with designees who initiate contact by telephone, email, or mail.

• Requires servicers to also send copies of delinquency and default communications to an independent counseling agency if the borrower consents on a form provided during the counseling process.

• Mandates that reverse mortgage counseling include an explanation of the borrower's right to name a third-party designee and requires counselors to provide a standardized authorization form for the borrower to complete if desired.

• Creates a $1,000 civil penalty payable to the borrower if a lender fails to comply with counseling requirements, and establishes a rebuttable presumption of servicer non-compliance with communication requirements absent a recorded affidavit.