Reverse Mortgage Guide

If you need a reverse mortgage you might want to encourage your state to emulate what is being done in North Carolina.

While many states seem to allow reverse mortgages from any source and through any “consultant,” North Carolina as a different approach:

“The General Assembly,” says the state, “enacted the Reverse Mortgage Act in 1991 (General Statute 53-255 et.seq.) for the purpose of making reverse mortgages a useful financial tool for elderly homeowners. With the exception of banks, savings institutions, credit unions and the North Carolina Housing Finance Agency, the Act requires that the Commissioner of Banks approve any lender which makes reverse mortgage loans in this State. Lenders such as banks which are exempt from the Act must, however, notify the Commissioner of Banks of their intent to make reverse mortgage loans in North Carolina.”

The North Carolina site has a list of lenders and counselors and also an application which shows the information they must provide.

In other words, individuals and entities which are typically unregulated providers of mortgage financing are covered under the North Carolina rule. Why is this not a good idea for all states? Wouldn’t it be a good thing to know that anyone who gets a fee, commission or other benefit from the creation of the reverse mortgage is registered with the state and meets their standards?

For more, see: http://www.nccob.org/NCCOB/Mortgage/ReverseMortgage/

This entry was posted on Monday, October 8th, 2007 at 7:24 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.