MA Releases Guidance on Law Temporarily Allowing Reverse Mortgage Borrowers to Receive Counseling via Video Conference or by Telephone

On April 27, 2020, the Massachusetts Division of Banks (DOB) issued guidance on the provision in House Bill 4647, which Governor Charlie Baker signed into law on April 20, 2020, that temporarily allows borrowers to receive the required reverse mortgage counseling via synchronous, real-time video conference or by telephone until the COVID-19 State of Emergency in Massachusetts is lifted.  Specifically, the DOB stated that during the State of Emergency, the in-person reverse mortgage counseling requirement set forth in the DOB’s regulations will be satisfied if the borrower receives the counseling via synchronous, real-time video conference or by telephone.

The DOB also noted that the HUD HECM Counseling Certificate can still be used to comply with the related written certification requirement under the DOB’s regulations.  The DOB stated that if the borrower receives the required reverse mortgage counseling via synchronous, real-time video conference, the counselor can check the box for telephonic counseling on the HUD HECM Counseling Certificate.

The DOB’s guidance is available here.