Establishes pre-loan counseling requirements and borrower rights of recission for reverse mortgage loans.

This New Jersey bill (S 264) requires lenders to provide reverse mortgage borrowers with pre-loan counseling and a 7-day cancellation period before finalizing loans. It directly affects borrowers aged 60+ who apply for or receive reverse mortgages (home loans converting home equity into cash) and lenders originating these loans. Key provisions include: (1) lenders must give borrowers a written checklist covering financial impacts of early moves, alternatives to reverse mortgages, and tax/estate effects; (2) borrowers must get in-person counseling from approved agencies and provide certification; (3) lenders face a $1,000 penalty for non-compliance or voided loans if counseling isn’t completed. The bill aims to ensure borrowers understand reverse mortgage risks and options before committing.