Bill regarding Reverse Mortgages Passed in Washington
In the state of Washington, non-bank lenders will now be able to offer reverse mortgages as part of the reverse mortgage legislation made into law recently by the Governor of Washington. House Bill 1311 rectified provisions in a law that took effect last summer that prevented lenders who are not banks from offering reverse mortgages. The non-bank lenders in Washington need to be licensed under the state’s Consumer Loan Act. The law also regulates ‘proprietary’ reverse mortgages.
The law comes into effect 90 days after April 26, according to a legislative assistant of a prime sponsor of the bill, Rep. Steve Kirby. Reverse mortgages are used by senior homeowners to get access to a steady stream of money, but there have been some situations where unscrupulous mortgage lenders have forced homeowners into foreclosure, which is why it becomes important to regulate the reverse mortgage industry.
