PA House approves Cephas bill to protect older homeowners

This week, the PA House of Representatives passed legislation sponsored by state Rep. Morgan Cephas, D-Phila., to protect homeowners from unknowingly losing their home and generational wealth. Senior citizens and other homeowners on a fixed income often refinance their homes utilizing a reverse mortgage based on the benefit of an immediate financial gain without fully understanding the long-term outcome of the agreement.

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House Bill 1466 would ensure that anyone entering this type of transaction receives face-to-face financial counseling to make homeowners aware of the risks associated with a reverse mortgage.

A reverse mortgage is a financial agreement that allows a homeowner to borrow on the equity in their home for a short-term monetary gain, such as a lump sum or a fixed payment. These complex contracts often target seniors who have spent their lives building equity in their homes and might not fully grasp the details of the agreement.