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The 193rd General Court of the Commonwealth of Massachusetts

Section 7A: Reverse mortgage loan requirements

[ Section impacted by 2020, 65, Sec. 2, as amended by 2021, 20, Sec. 6 effective April 20, 2020 and 2022, 22, Secs. 25, 41 and 44 as amended by 2022, 107, Sec. 5 effective February 12, 2022 relating to modification of mortgagor counseling in order to address disruptions caused by the outbreak of COVID-19.]

  Section 7A. (a) As used in this section the following word shall, unless the context clearly requires otherwise, have the following meaning:--

  "Mortgagor'', an applicant for a reverse mortgage who: (1) has a gross income of less than 50 percent of the area median income, as periodically determined by the United States Department of Housing and Urban Development; and (2) possesses assets, excluding a primary residence, valued at less than $120,000.

  (b) No mortgagee shall make a reverse mortgage loan pursuant to section 7 to a mortgagor unless: (i) the mortgagor affirmatively opts in writing for the reverse mortgage; and (ii) at or before the closing of any reverse mortgage loan the mortgagee has received written certification from a counselor with a third-party organization that the mortgagor has received counseling in person relative to the appropriateness of the loan transaction from the third party organization and has completed an approved counseling program offered by the third party organization; provided, however, that the third party organization shall have been approved by the executive office of elder affairs for purposes of such counseling.

  (c) 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. The commissioner shall adopt regulations to administer and implement this section.