California Governor Jerry Brown last week signed a bill into law that will add new protections for reverse mortgage borrowers in the state.
The legislation, known among industry members as AB 1700 or California’s “cooling off” bill, was introduced and sponsored by Assemblyman Jose Medina (D-CA) and will take effect January 1, 2015. The bill requires that a new reverse mortgage worksheet be presented to and signed by all borrowers during the counseling process and a “cooling off” period of seven days after counseling before a lender can accept a loan application or assess any fees.