Bid to Regulate Reverse Mortgages Stalls in House

Arizona Daily Star (03/20/08); Fischer, Howard
Some state lawmakers in Arizona have joined the mortgage and banking industry in opposing a bill sponsored by Rep. Bill Konopnicki, R-Safford, chair of the House Committee on Financial Institutions and Insurance, that would regulate reverse mortgages. HB 2506--which would require disclosures of all terms, including interest rates and fees, and ban the practice of requiring a homeowner to buy an annuity as part of the deal--stalled in the House. "I just want to be sure they [homeowners] know exactly what they're getting, how long it will last and what the total consequences are," said Konopnicki. Terry Turk, president of Sun America Mortgage Co. in Mesa and a representative of the National Reverse Mortgage Lenders Association, says statutes regulating private reverse mortgages should generally be in line with federal rules.