Authority, Purpose and Scope

(1) Authority. 209 CMR 55.00 is issued pursuant to M.G.L. c. 167E, Section 7A and M.G.L. c. 171, Section 65C1/2. (2) Purpose. The purpose of 209 CMR 55.00 is to implement the additional consumer protections afforded by the law to reverse mortgage borrowers that fall within a certain income and asset threshold. Pursuant to M.G.L. c. 167E, Section 7 or M.G.L. c. 171, Section 65C, a mortgagee is prohibited from making a reverse mortgage loan unless the mortgagor has affirmatively opted in to the reverse mortgage and has received counseling from a counselor employed by a third party organization whose counseling program has been approved by the Executive Office of Aging and Independence. (3) Scope. 209 CMR 55.00 applies to any mortgagee engaged in making reverse mortgage loans to any mortgagor, as defined in 209 CMR 55.02.