Cephas introduces legislation to help seniors avoid pitfalls of reverse mortgages
HARRISBURG, Jan. 19 – State Rep. Morgan Cephas, D-Phila., will soon be introducing legislation to help seniors who might otherwise become victim to potential pitfalls of reverse mortgages to help them better understand the process and be able to take advantage of the benefits of the option.
“Reverse mortgages can help some seniors navigate financial struggles,” Cephas said. “But for some seniors and their families, reverse mortgages can be confusing financial tools that are costly, even costing some their homes. These contracts can be difficult to navigate, especially for our most vulnerable populations. Understanding how a reverse mortgage works is key, which is why I will be introducing legislation to ensure that seniors be educated about reverse mortgages before they get one.”
Cephas’ legislation would require face-to-face counseling for a senior with an approved financial counselor before one begins a reverse mortgage. If the meeting is unable to take place face-to-face, the potential borrower could also meet with a counselor over the phone or through video teleconference.
“I want seniors in my district and across the commonwealth to get the support they need as they make life-changing decisions,” Cephas said. “This legislation will help ensure they are provided the support they deserve.”