|Posted:||January 19, 2022 10:01 AM|
|From:||Representative Morgan Cephas|
|To:||All House members|
|Subject:||Reverse Mortgage Counseling|
To: All House Members
From: Rep. Morgan Cephas
Date: January 18, 2022
Subject: Reverse Mortgage Counseling
Today, many Pennsylvanians face economic struggles. In response, some of our seniors have decided to enter reverse mortgages, which allow them to borrow on the equity of their home in exchange for a lump sum, fixed monthly payment, or line of credit. While this may help seniors access their assets without selling their home, many may end up paying more than before, and some could even lose their home.
Pennsylvania’s seniors should be made aware of the potential downsides before entering a reverse mortgage. That is why I am introducing legislation that would require face-to-face counseling with an approved financial counselor before one begins a reverse mortgage. If the meeting is unable to take place face-to-face, the potential borrower could also meet with a counselor over the phone or through video teleconference.
Seniors should enjoy a quality retirement with dignity and financial security. It is vital that our seniors and other homeowners are fully informed about the risks of certain financial products and the alternatives. I ask that you join me in co-sponsoring this important legislation.
Introduced as HB2316