California Reverse Mortgage Bill Amended, 30 Day Rescission Eliminated

The California Assembly Committee on Banking and Finance approved AB 329 with a few amendments, one of which strikes 30 day right of recession from the bill.  Next, AB 329 will be voted on by the full assembly.

Other than the elimination of the 30 day recession, the following amendments were added:

Cross Selling

(B) Refer the borrower to anyone for the purchase of an annuity orother financial or insurance product prior to the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement.  

(2) This subdivision does not prevent a lender from offering orreferring borrowers for title insurance, hazard, flood, or other peril insurance, or other similar products that are customary and normal under a reverse mortgage loan.


This subdivision does not prevent a counseling agency from receiving financial assistance that is unrelated to the offering or selling of a reverse mortgage loan and that is provided by the lender as part of charitable or philanthropic activities.

The counseling amendment seems to leave to the door open to influence counselors indirectly with payments, but I see what they are trying to get across.  You can read a copy of the amended version of AB 329 here.  

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