Update: Changes to the Counseling Requirements in the State of California
Dear Licensed Partner,
The State of California has made certain amendments to several California Civil Code Sections applicable to Reverse Mortgages (i.e., HECMs) originated for properties located in California. These amendments go into effect with loan applications taken on or after January 1, 2015.
1) The previously required Worksheet Checklist has been replaced with the new Reverse Mortgage Worksheet Guide. The same can be downloaded from Sunsoft as part of the Pre-Counseling Package.
The Reverse Mortgage Worksheet Guide must be signed by the prospective Borrower(s) and if the Counseling was done in person, it must also be signed by the Agency Counselor.
2) The Mortgage Loan Originator must now wait seven (7) business days from the Counseling Date indicated on the Counseling Certification to take or accept a California Reverse Mortgage Loan Application or assess any fees upon a prospective Borrower.
3) Changes have been made to the IMPORTANT NOTICE TO REVERSE MORTGAGE LOAN APPLICANT Disclosure. The updated disclosure is now available for download as part of the Pre-Counseling Package in Sunsoft.
The Loan Application for the subject property located in the State of California will not be approved if the above-mentioned points are not satisfied.
Click Here for the text of the California Assembly Bill detailing the statutory amendments.
If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.