General Assembly Committee Bill No. 5565
January Session, 2013 LCO No. 3774
*03774HB05565BA_*
Referred to Committee on BANKS
Introduced by:
(BA)
General Assembly
Committee Bill No. 5565
January Session, 2013
LCO No. 3774
*03774HB05565BA_*
Referred to Committee on BANKS
Introduced by:
(BA)
AN ACT CONCERNING REVERSE MORTGAGE TRANSACTIONS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2013) (a) For purposes of this section, "required minimum age" means the minimum age set by the federal government for a reverse mortgage transaction guaranteed by the Federal Housing Administration or by the private company that develops a reverse mortgage for a private reverse mortgage transaction.
(b) No creditor who enters into a reverse mortgage transaction, as defined in 12 CFR 226.33, with a married resident of this state shall require the older spouse of the married couple to be the sole individual obligated on the reverse mortgage transaction unless the younger spouse was younger than the required minimum age when the reverse mortgage transaction was originated and, therefore, did not qualify as a borrower on such transaction.
This act shall take effect as follows and shall amend the following sections:
Section October 1, 2013 New section
This act shall take effect as follows and shall amend the following sections:
Section
October 1, 2013
New section
Statement of Purpose:
To reduce the rate of default on reverse mortgage transactions and prevent the eviction of a surviving spouse from the mortgaged residence.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]
Co-Sponsors: REP. MUSHINSKY, 85th Dist.
Co-Sponsors:
REP. MUSHINSKY, 85th Dist.
H.B. 5565