NJ S264

Requires lenders to provide borrowers with a written checklist covering key reverse mortgage considerations, including impacts of early move-out, alternative financial options, effects on heirs and other residents, and ability to finance home repairs or future care needs.

Mandates that borrowers receive in-person counseling from a HUD-approved counseling agency before loan application, with certification signed by both borrower and counselor valid for 180 business days.

Lenders must provide contact information for at least five New Jersey-domiciled HUD-approved counseling agencies that have no financial ties to the lender or loan-related products.

Establishes a seven-day right of rescission after the borrower accepts the lender's written loan commitment, during which the borrower cannot be required to close on the loan.

Reverse mortgages executed without required pre-loan counseling are void and unenforceable; lenders failing to comply with requirements face a $1,000 civil penalty payable to the borrower.