One of my favorite news sites, Banker & Tradesman, has an interesting article on how reverse-mortgage brokers are worried about a new bill that was recently passed by the Massachusetts Senate, requiring borrowers seeking a reverse mortgage to have a face-to-face counseling session with an accredited third-party counselor before obtaining the loan. Critics say it may hurt more than it helps.
Senior advocates say in-person counseling is better for seniors, making it easier for the counselors to explain complex forms and loan terms, especially with clients who may be hard of hearing.
But brokers say there simply aren’t enough approved counselors in the state to conduct the sessions in a timely manner, and if the law is passed it could create substantial backlogs in the processing of the loans.
What are your thoughts?