House committee advances bill requiring counseling before reverse mortgage transactions

House Bill 1466, which would require counseling from an approved financial counselor before a consumer may complete a reverse mortgage transaction, was reported out of the House Aging & Older Adult Services Committee as amended.

The bill matters because reverse mortgages can carry high fees and interest, risk homeowners’ equity and interrupt eligibility for other housing programs; sponsors and witnesses said counseling would give older homeowners more information about alternatives.

Chuck, a committee staff member, told the committee the bill "amends title 7 of banks and banking by requiring face to face counseling by an approved financial counselor before an applicant can begin a reverse mortgage process." Representative Cephas, the prime sponsor, told…