Connecticut General Statutes 36a-267 – Reverse annuity mortgage loans. Counseling, certification requirements. Penalties for violations
(a) No entity, including, but not limited to, any state or federally chartered bank or state or federally chartered credit union, shall accept a final and complete application for a reverse annuity mortgage loan, as defined in section 36a-265, or assess any fees for such mortgage, unless such entity has:
Terms Used In Connecticut General Statutes 36a-267
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Bank: means a Connecticut bank or a federal bank. See Connecticut General Statutes 36a-2
- Loan: includes any line of credit or other extension of credit. See Connecticut General Statutes 36a-2
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Person: means an individual, company, including a company described in subparagraphs (A) and (B) of subdivision (12) of this section, or any other legal entity, including a federal, state or municipal government or agency or any political subdivision thereof. See Connecticut General Statutes 36a-2
- State: means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the trust territory of the Pacific Islands, the Virgin Islands and the Northern Mariana Islands. See Connecticut General Statutes 36a-2
(1) (A) Informed the prospective applicant of the counseling requirement as described in subdivision (2) of this subsection, and (B) provided the prospective applicant with a list of independent housing counseling agencies and intermediaries approved by the United States Department of Housing and Urban Development to engage in reverse annuity mortgage loan counseling, in accordance with 24 C.F.R. § 206.300 et seq., as amended from time to time; and
(2) Received a signed certification from the prospective applicant or the prospective applicant’s authorized representative that the applicant or the applicant’s authorized representative has received counseling in person or by telephone from an independent housing counseling agency. No such counseling agency shall receive any compensation, either directly or indirectly, from the lender or from any other person or entity involved in originating or servicing the loan.
(b) Certification of the counseling session shall be signed by (1) the prospective applicant or the prospective applicant’s authorized representative, and (2) the independent housing counseling agency’s counselor. Such signed certification shall include the date of the counseling session and the name, address and telephone number of both the prospective applicant and the counselor. The lender shall maintain such signed certification in an accurate, reproducible and accessible format for the term of the reverse annuity mortgage loan.
(c) A violation of the provisions of this section shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.