I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Reverse Mortgage Pro5 ceeds Protection Act’’. 


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1 SEC. 2. PROHIBITION ON REQUIRED PURCHASE OF AN AN2 NUITY. 

3 Section 255 of the National Housing Act of 1937 (12 

4 U.S.C. 1715z–20) is amended— 

5 (1) by striking subparagraph (B) of subsection 

6 (d)(2) and inserting the following new subparagraph: 

7 ‘‘(B) has received adequate counseling by a 

8 third party (other than a reverse mortgage 

9 lender, servicer or investor, or an entity en10 gaged in the sale of annuities, investments, 

11 long-term care insurance, or any other type of 

12 financial or insurance product) as provided in 

13 subsection (f);’’; 

14 (2) by striking the first sentence of subsection 

15 (f) and inserting the following new sentence: ‘‘The 

16 Secretary shall provide or cause to be provided and 

17 paid for by entities other than a reverse mortgage 

18 lender, servicer or investor, or an entity engaged in 

19 the sale of annuities, investments, long-term care in20 surance, or any other type of financial or insurance 

21 product the information required in subsection 

22 (d)(2)(B).’’; 

23 (3) by striking subsection (l); 

24 (4) by redesignating subsection (m) as sub25 section (l); 


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1 (5) by striking subsection (l), as so redesig2 nated, and inserting the following new subsection: 

3 ‘‘(l) FUNDING FOR COUNSELING.—The Secretary 

4 may, in his or her discretion, use a portion of the mort5 gage insurance premiums collected under the program 

6 under this section to adequately fund the counseling and 

7 disclosure activities required under subsection (f), includ8 ing counseling for those homeowners who elect not to take 

9 out a home equity conversion mortgage.’’; and 

10 (6) by adding at the end the following new sub11 section: 

12 ‘‘(m) REGULATIONS TO PROTECT ELDERLY HOME13 OWNERS.— 

14 ‘‘(1) IN GENERAL.—Not later than 6 months 

15 after the date of the enactment of the Reverse Mort16 gage Proceeds Protection Act, the Secretary shall, in 

17 consultation with other relevant Federal depart18 ments and agencies, prescribe regulations to help 

19 protect elderly homeowners from the marketing of fi20 nancial and insurance products not in the interest of 

21 such homeowners, including the marketing or sale of 

22 an annuity as a condition of obtaining any home eq23 uity conversion mortgage. 

24 ‘‘(2) CONSULTATION.—In developing the regu25 lations required under paragraph (1), the Secretary 


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1 shall consult with consumer advocates (including 

2 recognized experts in consumer protection), industry 

3 representatives, representatives of counseling organi4 zations, and other interested parties.’’. 

Æ 


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