Recently, the governor of California, Arnold Schwarzenegger, signed the Assembly Bill 329 into law. This law contains many statutes which serve to protect seniors entering into a reverse mortgage. Commonly referred to as the Elder Protection Act of 2009, this law serves as an additional protection for seniors in order to ensure that they understand the reverse mortgage process and are entering into the agreement willingly.
One important safeguard that this law institutes is that the client receives an “Important Notice to Reverse Mortgage Loan Applicants.” This notice must be in 16-point type and emphasizes the complexity of the financial transaction. Basically, this statement discloses that a reverse mortgage is a loan against the equity in their home and that the applicant will be required to sign binding legal documents. This notice must be given to an applicant before attending loan counseling. Continue reading ‘California – Leading the Way in Reverse Mortgage Protections’ »