Month: June 2017

Osten Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

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Osten Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

State Senator Cathy Osten (D-Sprague) this evening voted to protect elderly homeowners in dire financial circumstances from possible deception or bad decisions by requiring banks to counsel them on the pros and cons of reverse mortgages before signing any such agreement.

The bill passed the Senate on a 24-12 mostly party-line vote, with all Democratic state senators voting in favor of the pro-consumer bill and two-thirds of Republican senators voting against the measure.

The bill now heads to the House of Representatives for consideration.

“When I think about people like my mom, who is 86, going to a bank and applying for a reverse mortgage on her home, on her own—that thought scares me,” Sen. Osten said. “Banks and other mortgage lenders may have the best of intentions of their clients at heart, but others may not. This bill ensures that there is at least a basic level of understanding by senior citizens about everything they are getting into, and what their responsibilities and what the possible problems are. It’s a good consumer bill, and a good bill to protect the homes of senior citizens.”

Senate Bill 579, “An ACT CONCERNING PROTECTIONS FOR CONSUMERS APPLYING FOR REVERSE MORTGAGES,” establishes a counseling requirement that must be met before any Connecticut bank or credit union can accept a reverse annuity mortgage loan application (a reverse annuity mortgage allows elderly homeowners to convert accumulated home equity into liquid assets.)

Such counseling may include telling elderly homeowners about other options available to them, the financial implications of entering into a reverse mortgage, disclosing that a reverse mortgage may have tax consequences, affect eligibility for assistance under federal and state programs, or have an impact on the homeowner’s estate and heirs.

The bill also requires reverse mortgage lenders to store a signed certification from the borrower that the counseling requirements were met.

Nationally, reverse mortgages are sometimes marketed to older Americans with advertisements featuring reassuring celebrity spokesmen. Last year, the Consumer Financial Protection Bureau fined three reverse mortgage companies a combined $800,000 for using deceptive advertisements to sell reverse mortgages, noting that while these national firms promoted the loans as essentially risk-free, borrowers of reverse mortgages can default on their loans and lose their homes through foreclosure if they fail to make necessary payments for property taxes, insurance or home maintenance.

Flexer Leads Senate Passage of Bill to Protect Access to Health Care for Women

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Flexer Leads Senate Passage of Bill to Protect Access to Health Care for Women

State Senator Mae Flexer (D-Danielson) today led passage of bill aimed at protecting health benefits for women, children and adolescents.

Senate Bill 586, “An Act Expanding Mandated Health Benefits for Women, Children and Adolescents,” passed the Senate in a bipartisan, unanimous vote.

The bill comes at a time when national legislators have moved to slash health care coverage for millions of Americans, including 109,000 Connecticut residents enrolled under the ACA.

“This legislation will ensure that regardless of what happens in Washington, women’s health care will continue to be protected in our state,” said Sen. Flexer. “It is imperative that we put the health care of Connecticut residents first, and I am so pleased that this bill had strong, bipartisan support.”

Senate Bill 586 seeks to ensure that women’s health care will be protected under any circumstances with or without protections from the federal government. The bill expands mandated health benefits for women, children and adolescents; expands mandated contraception benefits; and requires the Commissioner of Social Services to amend the Medicaid state plan to provide expanded contraception benefits.

Thanks to President Obama’s Affordable Care Act, nearly 800,000 Connecticut women have not been charged a copay or deductible for contraceptive coverage resulting in an average yearly savings of hundreds of dollars. SB 586 will ensure that regardless of what happens now to the Affordable Care Act in Washington, the protections essential health benefits it affords to all women will remain law in Connecticut.

This bill makes sure that health insurance coverage plans cover 21essential benefits that women need in order to receive comprehensive healthcare in our state, including:

  • Well-woman visits for any woman who is younger than 65 years old;
  • Breast cancer screenings
  • Screenings for sexually transmitted diseases
  • Breastfeeding support and counseling for any pregnant or breastfeeding woman;
  • Breastfeeding supplies, including a breast pump;
  • Gestational diabetes screening for any woman who is 24 to 28 weeks pregnant, and any woman who is at increased risk for gestational diabetes; and
  • Osteoporosis screening for any woman who is 60-years-old or older.

Bye Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

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Bye Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

State Senator Beth Bye (D-West Hartford) this evening voted to protect elderly homeowners in dire financial circumstances from possible deception or bad decisions by requiring banks to counsel them on the pros and cons of reverse mortgages before signing any such agreement.

The bill passed the Senate on a 24-12 mostly party-line vote, with all Democratic state senators voting in favor of the pro-consumer bill and two-thirds of Republican senators voting against the measure.

The bill now heads to the House of Representatives for consideration.

“For a lot of seniors, their home is not just a familiar and comfortable place, or a lifetime investment—it is their last place of refuge,” Sen. Bye said. ‘It’s already a difficult decision for financially embattled seniors to apply for a reverse mortgage. They need to be sure this is the right thing to do, and to be aware of all the potential pitfalls and financial dangers. This bill ensures they get the counseling they need and deserve, instead of leaving the whole thing to chance. I don’t know why anyone would vote against this bill.”

Senate Bill 579, “An ACT CONCERNING PROTECTIONS FOR CONSUMERS APPLYING FOR REVERSE MORTGAGES,” establishes a counseling requirement that must be met before any Connecticut bank or credit union can accept a reverse annuity mortgage loan application (a reverse annuity mortgage allows elderly homeowners to convert accumulated home equity into liquid assets.)

Such counseling may include telling elderly homeowners about other options available to them, the financial implications of entering into a reverse mortgage, disclosing that a reverse mortgage may have tax consequences, affect eligibility for assistance under federal and state programs, or have an impact on the homeowner’s estate and heirs.

The bill also requires reverse mortgage lenders to store a signed certification from the borrower that the counseling requirements were met.

Nationally, reverse mortgages are sometimes marketed to older Americans with advertisements featuring reassuring celebrity spokesmen. Last year, the Consumer Financial Protection Bureau fined three reverse mortgage companies a combined $800,000 for using deceptive advertisements to sell reverse mortgages, noting that while these national firms promoted the loans as essentially risk-free, borrowers of reverse mortgages can default on their loans and lose their homes through foreclosure if they fail to make necessary payments for property taxes, insurance or home maintenance.

Moore Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

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Moore Votes to Protect Elderly Homeowners Seeking a Reverse Mortgage

Senator Marilyn Moore (D-Bridgeport) voted today to protect elderly homeowners in dire financial circumstances from possible deception or uninformed decisions by requiring banks to counsel them on the pros and cons of reverse mortgages before signing any such agreement.

The bill passed the Senate on a 24-12 mostly party-line vote, with all Democratic state senators voting in favor of the pro-consumer bill and two-thirds of Republican senators voting against the measure. The bill now heads to the House of Representatives for consideration.

“Elderly home-owners in Connecticut have been victimized by unethical lending practices when seeking reverse mortgages,” Sen. Moore said. “As promised, I’m proud to stand up for seniors in our community by supporting this bill and ensuring home-owners receive counseling before committing to an agreement that will affect their finances for the rest of their lives.”

Senate Bill 579, “An Act Concerning Protections for Consumers Applying for Reverse Mortgages,” establishes a counseling requirement that must be met before any Connecticut bank or credit union can accept a reverse annuity mortgage loan application (a reverse annuity mortgage allows elderly homeowners to convert accumulated home equity into liquid assets.)

Such counseling may include telling elderly homeowners about other options available to them, the financial implications of entering into a reverse mortgage, disclosing that a reverse mortgage may have tax consequences, affect eligibility for assistance under federal and state programs, or have an impact on the homeowner’s estate and heirs.

The bill also requires reverse mortgage lenders to store a signed certification from the borrower that the counseling requirements were met.

Nationally, reverse mortgages are sometimes marketed to older Americans with advertisements featuring reassuring celebrity spokesmen. Last year, the Consumer Financial Protection Bureau fined three reverse mortgage companies a combined $800,000 for using deceptive advertisements to sell reverse mortgages, noting that while these national firms promoted the loans as essentially risk-free, borrowers of reverse mortgages can default on their loans and lose their homes through foreclosure if they fail to make necessary payments for property taxes, insurance or home maintenance.

Sen. Fonfara Leads Senate Passage of Bill Supporting Economic Growth in CT

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Sen. Fonfara Leads Senate Passage of Bill Supporting Economic Growth in CT

Hartford, CT– Senator John Fonfara (D-Hartford) today led unanimous senate passage of a finance bill that supports Connecticut’s economic growth by expanding access to Innovation Places grants, improving how Invest CT funds are sold, and increasing the Office of the Treasure’s investments in Connecticut businesses.

SB 1051 would make the following changes to various entrepreneurship and investment programs:

  • Allows CT Next to accept applications for Innovation Place grants in addition to the initial application round authorized under current law.
  • Allows insurance companies who hold Invest CT tax credits to sell or otherwise transfer those credits to any taxpayer, rather than just to their affiliates, and makes a conforming change.
  • Imposes various requirements on venture capital investments the Treasurer makes after July 1, 2017, including a requirement that if the Treasurer chooses to invest state money in a startup business, venture capital fund, the firm she chooses must have a presence in the state.

The bill passed unanimously in the Senate on Thursday and next goes to the House of Representatives for consideration.

Sen. Moore E-news: A Legislative Update

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