Tuesday, February 20, 2007
California has recently (September 2006) enacted legislation designed to protect older individuals from reverse mortage fraud. See Becky Bartindale, Governor signs bill to halt reverse mortgage scams, Oakland Tribune, Sept. 6, 2006:
The new law requires that before getting a reverse mortgage, people must receive independent advice about the pluses and minuses from a certified counseling agency that does not have a profit motive.
The law also requires that mortgage documents be translated into the language in which the loan was negotiated, ensuring that a borrower who doesn't speak English has full access to the complex financial information. And it blocks the questionable practice of requiring people to buy annuities they may not need.