Hartford, CT - Sen. Tony Hwang applauded the state senate's Apr. 24 unanimous passage of an important proposal to protect and inform Connecticut seniors and homeowners on Reverse Mortgages.
Senate Bill 150 - An Act Providing for Protections for Consumers Applying for Reverse Mortgages - prevents Connecticut banks from originating a reverse mortgage unless the bank has:
- informed the applicant of the HUD counseling requirement
- the applicant has attended the counseling session
- the counseling session was conducted in person.
“Many of us have heard horror stories about people - friends, neighbors - thrown out of their house due to a reverse mortgage," Sen. Hwang said. “I sponsored this bill in order to better protect Connecticut homeowners and vulnerable residents that may be persuaded by sophisticated sales and marketing of complicated mortgage finance contracts, and this bill should do just that. I was also encouraged to see that the banking and credit union industry has advised on this legislation. We will help protect people in our state on financial decisions impacting their homes.”
*Sen. Hwang, who is Co-Chair of the state legislature's Housing Committee and Vice-Chair of the Aging Committee, represents Easton, Fairfield, Newtown, Weston and Westport. On the web: www.SenatorHwang.com. He can be reached at Tony.Hwang@cga.ct.gov and at 800-842-1421.