209 CMR, § 55.04 - Requirement for Third Party Counseling

(1) The Counselor shall provide a written certification to the mortgagee prior to the issuance of the Opt in Form that the mortgagor has received in person counseling relative to the appropriateness of the loan transaction and that the mortgagor has completed an approved reverse mortgage counseling program.

(2) A written certification which complies with all the requirements of 209 CMR 55.04 used by the counselor and received by the mortgagee may be in the form of a validly completed counseling certificate promulgated by the U.S. Department of Housing and Urban Development in connection with its Home Equity Conversion Mortgage (HECM) program.

(3) For other non-HECM reverse mortgage loan products, the form of certification shall be substantially similar to the form promulgated by the U. S. Department of Housing and Urban Development in connection with its HECM program.

(4) All reverse mortgage counseling programs must be approved by the Executive Office of Elder Affairs.

(5) Effective August 1, 2012, a mortgagor is required to receive in person counseling by a Counselor employed by a Third Party Organization whose reverse mortgage counseling program has been approved by the Executive Office of Elder Affairs.

(6) A reverse mortgage executed with a borrower that has not received counseling by a third party approved by the Executive Office of Elder Affairs shall render the terms of the reverse mortgage unenforceable.

Notes

209 CMR, § 55.04