[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5758 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5758

To prohibit authorized lenders of home equity conversion mortgages from 
requiring seniors to purchase an annuity with the proceeds of a reverse 
mortgage, and to provide other consumer protections to reverse mortgage 
                   borrowers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2008

   Ms. Lee introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To prohibit authorized lenders of home equity conversion mortgages from 
requiring seniors to purchase an annuity with the proceeds of a reverse 
mortgage, and to provide other consumer protections to reverse mortgage 
                   borrowers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reverse Mortgage Proceeds Protection 
Act''.

SEC. 2. PROHIBITION ON REQUIRED PURCHASE OF AN ANNUITY.

    Section 255 of the National Housing Act of 1937 (12 U.S.C. 1715z-
20) is amended--
            (1) by striking subparagraph (B) of subsection (d)(2) and 
        inserting the following new subparagraph:
                    ``(B) has received adequate counseling by a third 
                party (other than a reverse mortgage lender, servicer 
                or investor, or an entity engaged in the sale of 
                annuities, investments, long-term care insurance, or 
                any other type of financial or insurance product) as 
                provided in subsection (f);'';
            (2) by striking the first sentence of subsection (f) and 
        inserting the following new sentence: ``The Secretary shall 
        provide or cause to be provided and paid for by entities other 
        than a reverse mortgage lender, servicer or investor, or an 
        entity engaged in the sale of annuities, investments, long-term 
        care insurance, or any other type of financial or insurance 
        product the information required in subsection (d)(2)(B).'';
            (3) by striking subsection (l);
            (4) by redesignating subsection (m) as subsection (l);
            (5) by striking subsection (l), as so redesignated, and 
        inserting the following new subsection:
    ``(l) Funding for Counseling.--The Secretary may, in his or her 
discretion, use a portion of the mortgage insurance premiums collected 
under the program under this section to adequately fund the counseling 
and disclosure activities required under subsection (f), including 
counseling for those homeowners who elect not to take out a home equity 
conversion mortgage.''; and
            (6) by adding at the end the following new subsection:
    ``(m) Regulations To Protect Elderly Homeowners.--
            ``(1) In general.--Not later than 6 months after the date 
        of the enactment of the Reverse Mortgage Proceeds Protection 
        Act, the Secretary shall, in consultation with other relevant 
        Federal departments and agencies, prescribe regulations to help 
        protect elderly homeowners from the marketing of financial and 
        insurance products not in the interest of such homeowners, 
        including the marketing or sale of an annuity as a condition of 
        obtaining any home equity conversion mortgage.
            ``(2) Consultation.--In developing the regulations required 
        under paragraph (1), the Secretary shall consult with consumer 
        advocates (including recognized experts in consumer 
        protection), industry representatives, representatives of 
        counseling organizations, and other interested parties.''.
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