There's a bill, SF 489/FH 528, on Governor Pawlenty's desk that would impose a 10-day right-of-rescission on reverse mortgages written in Minnesota.
This would of-course cause loans to fund, per federal law (RESPA), after 3-days, but still give the senior the right to cancel their reverse mortgage AFTER they've gotten the reverse mortgage lender's money.
In 48% of all reverse mortgages, an existing "forward" mortgage is paid-off, on behalf of the senior, by the reverse mortgage lender, to erase their monthly mortgage payments, for the rest of their life.
But if the Governor signs SF 489/FH 528 into law, reverse mortgage lenders would have to somehow "un-pay-off" those forward mortgages, and other debts the senior elected to have paid-off, from their reverse mortgage proceeds.
Huh?
Clearly, this bill cannot work in practice, and all reverse mortgage lenders will stop lending in Minnesota, harming the state's seniors greatly.
Please call, fax, and/or e-mail Governor Pawlenty TODAY, and urge him to veto SF 489/FH 528.
Here's his e-mail address.
Sincerely, your friend,
Scott Tucker
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