Bid to regulate reverse mortgages stalls in House

Bid to regulate reverse mortgages stalls in House,

An effort to enact Arizona’s first-ever regulation of reverse mortgages has stalled amid industry opposition.

Rep. Bill Konopnicki, a Safford Republican sponsoring the reverse-mortgage legislation, said the state’s aging boomer population is resulting in more people reaching the age at which they might want to use the equity in their homes for living expenses.

Konopnicki, who chairs the House Committee on Financial Institutions and Insurance, said there are serious pitfalls for those who go unaware into what can be complex financial deals. At the very least, Konopnicki wants better disclosure of the terms of these deals which he said can leave homeowners with far less than they anticipated.

But HB 2506 has stalled, and not only because of concerns by lobbyists for the banking and mortgage industry. It also has drawn fire from some lawmakers who question level of protection the state should provide to keep people from making bad financial decisions.

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Post from: Reverse Mortgage Loan Blog

Bid to regulate reverse mortgages stalls in House

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Written by News & Feeds on March 28th, 2008 with comments disabled.
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