Reverse mortgages: notifications.

Existing state and federal law regulate the activities of financial institutions. Existing state law regulates reverse mortgage loans and requires a lender to refer a prospective borrower to a housing counseling agency, as specified, and prohibits a lender from accepting a final and complete application for a reverse mortgage loan or assessing any fees without receiving certification, as specified, that the borrower has received loan counseling. Existing law also prohibits a lender from taking a reverse mortgage application before having provided an applicant, prior to meeting with a counseling agency, a specified disclosure notice and checklist that address various aspects of reverse mortgages. This bill would add provisions to the reverse mortgage disclosure notice and checklist, as described above, addressing the status of a nonborrower spouse, the effect of a borrower's death or permanent relocation from the home, and the effect of specified home improvement loans.