Lenders need prior approval to originate home equity conversion mortgages for purchases in Massachusetts, a Division of Banks spokesman said today.
Massachusetts law allows lenders with programs approved by the Division of Banks to make reverse mortgages “to the owner of real estate.” Spokesman Jason Lefferts said the law does not preclude lenders from originating HECM for Purchase deals. But they must amend their existing plan or submit a new one, he said.
However, no lenders have yet submitted a request to provide the Federal Housing Administration’s reverse mortgage for home buyers, Lefferts said. The FHA made the HECM for Purchase program available Jan. 1.
Last year, Massachusetts Commissioner of Banks Steven L. Antonakes issued cease-and-desist orders to reverse mortgage lending companies that did not have approved plans.
