Massachusetts Governor Maura Healey (D) signed a bill permanently allowing remote reverse mortgage counseling via telephone or video conferencing services, eliminating strict in-person requirements. reverse mortgage business.
In-person requirements have been active in Massachusetts since 2010, but recent challenges—particularly those posed by the COVID-19 pandemic—have exposed how restrictions originally intended to protect seniors actually put them at risk. A serious challenge has come.This is because there are only a very few U.S. Department of Housing and Urban Development Among other issues, reverse mortgage counselors approved by the U.S. Department of Housing and Urban Development (HUD) are active in the state.
RMD sat down with two key figures in the reverse mortgage industry who have been working to make this happen for years – George Downey and Brett Kirkpatrick. federal savings bank in Braintree, Mass. – better understand what led to this moment.
Good intentions and challenging results
Downey explained the dynamics of the situation, saying that while the law that created the in-person requirement was originally well-intentioned, it exacerbated the challenges of not only doing business, but also meeting the needs of seniors seeking reverse mortgages.
“Stepping back and looking at it from a distance, I think this is a great example of how perceptions and misinformation can collide, especially when it comes to crafting legislation,” he said. “Righting the ship is difficult; as we have found, changing legislation is a very difficult thing to do. This is particularly true for reverse mortgages and the reputational issues that have long plagued the scheme.
While these challenges proved difficult to deal with, especially when the pandemic collided with in-person requirements that effectively halted business in the state, lobbying lawmakers to provide education and clarity helped push this new law into reality.
“I think as the public becomes more and more aware of [the challenges] …people know more about themselves, so they tend to [understand them],” Downey said.
Downey and Kirkpatrick have for years served as the state’s “frontline soldiers” trying to make that happen.But Downey is quick to point out that help from both sides Massachusetts Mortgage Bankers Association (MMBA) and National Reverse Mortgage Association (NRMLA) Complete final bill.
“They took the lead on this and brought tremendous credibility to this argument,” Downey said. “Brett and I have been involved from the beginning. We were behind this whole thing, but Thankfully, we finally solved the problem and it’s a permanent solution, at least until the next time the problem occurs.
passage of bill
Waivers and exceptions to the in-person counseling rule have been prevalent since the pandemic began, but permanent solutions proposed since then have consistently fallen short, with state legislatures instead opting to temporarily reauthorize the exceptions.
However, in early April 2024, the final extension to the exemption from the face-to-face consultation rules expired. It remains to be seen whether a permanent solution will continue, or whether there will be another temporary extension.
Rep. Kate Leeper-Garabedian (D) is leading the charge in the effort. Massachusetts House of RepresentativesTaking up the baton on the issue from her predecessor, Paul Brodeur. Ultimately, the language in Leeper-Garabedian’s version of the bill was tacked onto the broader supplemental budget bill, which subsequently passed both chambers of the state Legislature and was then signed into law by Healey.
Looking to the future
When RMD reached out to Rep. Lipper-Garabedian, she said she was pleased the bill’s passage addressed issues unique to seniors.
“I am pleased that a policy I have advocated for since taking office is now law in Massachusetts,” Rep. Leeper-Garabedian told RMD in an email. “As Vice Chairman of the House of Representatives on Aging, I am particularly aware of the importance of empowering seniors to live their lives safely and competently. With the passage of this legislation, Massachusetts joins 49 other states, In addition to in-person selection, seniors are also empowered to participate in reverse mortgage counseling virtually and over the phone.
The new law is also retroactive to March 31, 2024, meaning it technically takes effect the day before the final exemption expires, despite only being passed this week.
When asked about his main takeaway from the ordeal, Kirkpatrick said it was about collaboration and a set of best practices.
“I think the lesson is that legislative change and legislative work is very much a ground game and an inside game, and we have some great mentors who help us get in front of the right people,” he said. “They’re bombarded with emails, [many correspondences]but you really have to find the right person at the right time and present a very simple case.
In an email update to its members, NRMLA President Steve Irwin attributed the end result to the work of Downey and Kirkpatrick, calling the instance an example of association members influencing local reverse mortgage policy.