Vermont Governor Jim Douglas signed a bill last week that puts a cap on reverse mortgages to federal programs. This bill permanently removes the possibility and potential of a market for property in Vermont.
The bill H222, mandates that providers of Vermont must be approved by the Department of Housing and Urban Development. The new law also stipulates that all loans must be in accordance with the HUD program housing equity conversion mortgage or reverse mortgage federal program with the same standards. The loan must be insured by the Federal Housing Administration or similar federal agency. The bill but to invert the mortgage lending by government-sponsored enterprises.
The bill also makes face to face conselleria a requirement in most cases loans. Counseling agency must be used by borrowers who chose to request telephone advice. The consultant chosen must be approved by the Department of Banking, Insurance, Securities and Health Administration (BISHCA). The bill also makes cross-selling of annuities by the borrower’s right of recession period is illegal.
BISHCA Commissioner Paulette Thabault was quoted in an interview the week before the project was approved as saying “We wanted to make sure if reverse mortgages became a vehicle for people who have financial needs that had some consumer protections in place for that mortgages are appropriate and older people were protected from any disadvantage of a reverse mortgage ”
The new law into force from July 1 and also includes other provisions that regulate life settlements and allows BISCH to the new rules in relation to the professional designations of high-level advice