Reverse Mortgage State Rules: What Your State Adds to the Federal Ones

Updated August 14, 2026. Quick answer: a HECM is a federal product, so the rules that matter most are the same in all 51 US jurisdictions. On top of those, 19 jurisdictions add a requirement of their own that is real, binding, and more than the federal floor — AZ, CA, CT, DE, IL, IN, LA, MA, MD, MN, NC, NY, OK, RI, TN, TX, UT, VT, WA. The rest add nothing. And the finding that actually changes what you should do is one level below that: in AZ, WA and WV the state’s own reverse-mortgage act does not reach an ordinary federally insured loan at all, by its own definition, so the protections those states are credited with in every published table do not apply to the loan almost everybody actually gets. Below: the federal floor, who is genuinely above it, and what silence does and does not mean.

What the federal rules already give you, in every state

Everything below is measured against this, so it is worth being exact about what the federal rules do and do not say. A HECM borrower must be counselled:

“At the time of the initial contact with the prospective borrower, the mortgagee shall give the borrower a list of the names, addresses, and telephone numbers of HECM counselors and their employing agencies, which have been approved by the Commissioner, in accordance with subpart E of this part, as qualified and able to provide the information described in paragraph (b) of this section. The borrower, any Eligible or Ineligible Non-Borrowing Spouse, and any non-borrowing owner must receive counseling.” — 24 CFR § 206.41(a)

Read that again for what is missing. There is no minimum number of agencies on the list. There is no waiting period after the session. There is no rule about who pays the counsellor or what they may also sell you. Those three gaps are where almost every state overlay in this table lives. The one thing the federal rule does pin down is the paperwork: “The HECM counselor will provide the borrower with a certificate stating that the borrower, Non-Borrowing Spouse, and non-borrowing owner, as applicable, has received counseling. The borrower shall provide the mortgagee with a physical copy of the certificate.” — 24 CFR § 206.41(c)

You also already have a ban on being sold an annuity alongside the loan, and it is worth knowing which subsection it is in, because the commonly cited one is the wrong one. The flat prohibition is 12 U.S.C. § 1715z-20(o): “The mortgagor or any other party shall not be required by the mortgagee or any other party to purchase an insurance, annuity, or other similar product as a requirement or condition of eligibility for insurance under subsection (c), except for title insurance, hazard, flood, or other peril insurance, or other such products that are customary and normal under subsection (c), as determined by the Secretary.” The subsection usually quoted for this, 12 U.S.C. § 1715z-20(n)(1)(B)(ii), is a different rule — it obliges the lender to keep its own origination staff walled off from its other business, which is not the same promise.

And you have a right to cancel, though it is shorter and later than people expect: “The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by paragraph (b) of this section, or delivery of all material disclosures, whichever occurs last.” — 12 CFR § 1026.23(a)(3)(i) That clock starts at consummation, meaning after you have signed. Every state waiting period in this table runs between different events, which is why none of them is simply a longer version of this one.

The first question is not what your state requires. It is whether that requirement reaches your loan.

This is the part no state-by-state table of reverse mortgages contains, and it decides everything else. There are two kinds of reverse mortgage: the federally insured HECM, which is almost all of them, and a proprietary loan, which is not federally insured. Several states wrote their act to cover exactly one of the two. In AZ, WA and WV, the state’s reverse-mortgage law steps aside for the federally insured loan — so a reader taking an ordinary HECM there gets nothing from it.

Arizona is the cleanest illustration. Its chapter has an independent-counsellor rule, a ten-day statement and an annuity ban — and the definition the whole chapter runs on ends with this: “The consumer credit obligation is not a home equity conversion mortgage insured by the federal housing authority.” — A.R.S. § 6-1701(5)(d). Washington reaches the same result from the other direction, by writing its operative sections against a defined term: “‘proprietary reverse mortgage loan’ is any reverse mortgage loan product that is not a home equity conversion mortgage loan or other federally guaranteed or insured loan.” — RCW 31.04.505(3). Wisconsin is the exact mirror image, covering only the federally insured loan and saying nothing about the other: “‘Reverse mortgage loan’ means a loan, or an agreement to lend, which is secured by a first mortgage on the borrower’s principal residence, is insured by the federal government under 12 USC 1715z-20” — Wis. Stat. § 138.058(1)(b).

Vermont went further than any of them and simply required the federal product: “No financial institution shall issue a reverse mortgage loan unless it is a lender approved by the federal Department of Housing and Urban Development (HUD) to enter into a loan insured by the federal government and the reverse mortgage loan complies with all requirements for participation in the HUD Home Equity Conversion Mortgage Program or other similar federal reverse mortgage loan program from time to time created and is insured by the Federal Housing Administration or other similar federal agency or is a government sponsored enterprise reverse mortgage loan.” — 8 V.S.A. § 10704. That is not an overlay so much as a refusal to have a second market.

The states that put a clock on it, and no two clocks measure the same thing

12 jurisdictions impose an interval of their own. The intervals run from 3 to 20 days, and a table that prints only that number is worse than no table, because the number is the least important column. Two things differ underneath it. First, the interval runs between different events in every state — there are 10 different starting events among 12 states. Second, and this is the one that decides whether the rule protects you: some of these bar the deal from proceeding, and some merely oblige the lender to post you something in advance.

CA, IL, MA, MN, NY, RI, TX and UT stop the transaction. AZ, LA, NC and OK do not: there the lender must deliver a document a set number of days ahead, and nothing prevents you signing the moment it lands. Minnesota is the clearest of the barring kind, and its own text spells out that the state clock and the federal one are two different things: “(a) A borrower shall not be bound for seven days after the borrower’s acceptance, in writing, of the lender’s written commitment to make the reverse mortgage loan, and cannot be required to close or proceed with the loan during that time period. The lender shall provide the borrower with written notice of the seven-day cooling off period, which must be on a separate sheet of paper and in at least ten-point type. A borrower may not waive the provisions of this paragraph. (b) The borrower may rescind any reverse mortgage loan within three days of execution, as provided in Code of Federal Regulations, Regulation Z.” — Minn. Stat. § 47.58, subd. 10 (Seven-day cooling off period; right of rescission). Illinois writes the same protection and adds the sentence that gives it teeth: “(b) A borrower shall not be bound for 3 full business days after the borrower’s acceptance, in writing, of a lender’s written commitment to make a reverse mortgage loan and may not be required to close or proceed with the loan during that time period. A borrower may not waive the provisions of this subsection (b).” — 765 ILCS 945/20.

New York’s starts earliest of all and cannot be signed away: “Reverse mortgage loan applicants are required to wait three days after submitting an application before signing a commitment or in any way proceeding with a reverse mortgage loan. The three-day period cannot be waived.” — 3 NYCRR §§ 79.5(l), 79.5(h), 79.9(a)(1), 79.9(b).

California’s is the odd one out and the most useful, because it bites earliest among the rest. It does not delay your closing; it delays the lender’s ability to take your application or charge you anything at all: “A lender shall not accept a final and complete application for a reverse mortgage loan from a prospective applicant or assess any fees upon a prospective applicant until the lapse of seven days from the date of counseling, as evidenced by the counseling certification, and without first receiving certification from the applicant or the applicant’s authorized representative that the applicant has received counseling from an agency as described in subdivision (j) and that the counseling was conducted in person, unless the certification specifies that the applicant elected to receive the counseling in a manner other than in person.” — Cal. Civ. Code § 1923.2(k).

Who is allowed to counsel you, and how many names you have to be given

The federal rule says a list. It does not say how long the list is, and it does not say the counsellor must be independent of the person selling you the loan. 9 states fill one or both of those gaps.

Arizona’s is the one to read if you read only one, because it names the conflict directly rather than gesturing at it: “A. Adequate counseling under this chapter must be provided by a counselor who is an independent third party. B. To qualify as an independent third party, the counselor may not be associated with or compensated, directly or indirectly, by a party involved in any of the following: 1. Originating or servicing the reverse mortgage. 2. Funding the loan underlying the reverse mortgage. 3. Selling annuities, investments, long-term care insurance or any other type of financial or insurance product. C. Counseling services required pursuant to this chapter shall be provided by housing counseling agencies and by counselors who follow uniform counseling protocols approved by the United States department of housing and urban development.” — A.R.S. §§ 6-1702, 6-1703(A). California reaches the same place by arithmetic instead, requiring a list long enough that no single relationship can dominate it, and defaulting the session to in person.

Texas is the only state that put this in its constitution

Everywhere else these rules sit in a banking code, where a legislature can move them in an ordinary session. In Texas they sit in the constitution, and the conditions are written as conditions on the lien itself. The counselling condition is a window rather than an event: “(8) that is not made unless the prospective borrower and the spouse of the prospective borrower attest in writing that the prospective borrower and the prospective borrower’s spouse received counseling regarding the advisability and availability of reverse mortgages and other financial alternatives that was completed not earlier than the 180th day nor later than the 5th day before the date the extension of credit is closed;” — Tex. Const. art. XVI, § 50(k)(8). Both spouses must attest, whether or not both are borrowers.

And the closing is held open for twelve days after a notice that the lender and the borrower both have to sign before it counts: “(9) that is not closed before the 12th day after the date the lender provides to the prospective borrower the following written notice on a separate instrument, which the lender or originator and the borrower must sign for the notice to take effect:” — Tex. Const. art. XVI, § 50(k)(9)-(10). The notice text itself is set out in the constitution, which is not something any other state does for any consumer loan.

The annuity ban you already have, and the ones that reach further

10 jurisdictions ban tying an annuity or a similar product to a reverse mortgage: AZ, CA, IL, LA, MD, MN, RI, TN, VT, WA. Since the federal statute already does that for a HECM, the question is what the state version adds, and the answer is usually reach. The federal ban runs to the lender and to eligibility for federal insurance. Minnesota’s runs to everyone in the chain: “No lender, mortgage broker, or residential mortgage originator may: (1) require the purchase of an annuity, investment, life insurance, or long-term care insurance product as a condition of obtaining a reverse mortgage loan; (2) enter into any agreement to make a reverse mortgage loan that obligates the borrower to purchase an annuity, investment, life insurance, or long-term care insurance product; or (3) receive compensation for providing the borrower with information relating to an annuity, investment, life insurance, or long-term care insurance product.” — Minn. Stat. § 47.58, subd. 11 (Sales of insurance products in connection with reverse mortgage loan transactions).

Rhode Island reaches the broker as well and, unlike the federal rule, keeps reaching after closing: “A lender shall not require an applicant for a reverse mortgage to purchase an annuity as a condition of obtaining a reverse mortgage loan. A reverse mortgage lender or a broker arranging a reverse mortgage loan shall not: (i) Offer an annuity to the mortgagor prior to the closing of the reverse mortgage or before the expiration of the right of the mortgagor to rescind the reverse mortgage agreement. (ii) Refer the mortgagor to anyone for the purchase of an annuity prior to the closing of the reverse mortgage or before the expiration of the right of the mortgagor to rescind the reverse mortgage agreement.” — R.I. Gen. Laws § 34-25.1-7(a)(7). California blocks the referral rather than only the requirement: “A lender or any other person that participates in the origination of the mortgage shall not require an applicant for a reverse mortgage to purchase an annuity as a condition of obtaining a reverse mortgage loan. (1) The lender or any other person that participates in the origination of the mortgage shall not do either of the following: (A) Participate in, be associated with, or employ any party that participates in or is associated with any other financial or insurance activity, unless the lender maintains procedural safeguards designed to ensure that individuals participating in the origination of the mortgage shall have no involvement with, or incentive to provide the prospective borrower with, any other financial or insurance product. (B) Refer the borrower to anyone for the purchase of an annuity or other financial or insurance product prior to the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement.” — Cal. Civ. Code § 1923.2(i).

A reverse-mortgage act on the books is not a protection

34 jurisdictions have a statute or regulation that governs reverse mortgages by name. Only 19 of them require anything the federal rules do not already require. 11 have the law and add nothing: AR, IA, MT, ND, NE, NJ, NV, OR, SC, SD, WI.

West Virginia is the case that makes the point unanswerable, because its legislature wrote the reason down. The article is called the Reverse Mortgage Enabling Act, and its purpose section says: “In order to foster reverse mortgage transactions and better serve the elderly citizens of this state, the Legislature authorizes the making of reverse mortgages, and expressly relieves reverse mortgage lenders and borrowers from compliance with inappropriate requirements.” — W. Va. Code § 47-24-2. That is a statute whose stated job is to take requirements away.

A second shape is subtler and catches three states. Colorado, Missouri and West Virginia each require the borrower to attest in writing that the lender told them counselling was available. That is a signature on a form. HUD already requires more of every HECM borrower in every state — that the borrower actually receive counselling. Those three provisions are below the federal floor, not above it, and this page does not count them.

And one is written in the wrong mood entirely. Pennsylvania publishes a detailed, on-point reverse-mortgage chapter that is captioned a statement of policy and says should rather than shall throughout. Real guidance; not a rule a lender breaks by ignoring.

What “no state rule” does not mean

27 jurisdictions add nothing we could find. That is not a finding about your safety, and it is worth saying plainly what it does and does not mean.

It does not mean you are unprotected. Every rule in the first section applies to you in full: the counselling, the certificate, the annuity ban, the right to cancel. Those are federal and they do not vary. It does not mean your state has decided reverse mortgages are fine, and it does not mean a lender may do as it likes — general mortgage licensing, unfair-practices and elder-financial-abuse law all still apply, and none of that is what this page measured.

What it does mean is narrow and worth knowing anyway: there is no extra clock, no extra counsellor requirement and no extra annuity rule specific to this product that we could read in that state’s own published law. Each of those negatives was established by retrieving the state’s relevant statutes and searching the whole text, not by failing to find a page about it; the search covered 29,536,715 characters of state law across all 51 jurisdictions, and the lookup above will tell you how much was read for yours.

Why state-by-state tables of this go wrong

Five failures, and every one of them is a table that is right about the words and wrong about the effect.

They count the statute, not the scope. A state gets a tick for having a reverse-mortgage act. AZ, WA and WV have one that does not reach a federally insured loan. They print a day count without the two events. Seven days in California and seven days in Louisiana are not the same protection and do not happen at the same point. They treat a delivery deadline as a cooling-off period. AZ, LA, NC and OK oblige the lender to send something early; they do not stop you signing. And they credit a state for restating the federal rule, or for asking less than it. That is how West Virginia ends up on a list of states with strong reverse-mortgage protections.

And a fifth failure is mechanical rather than analytical: 6 jurisdictions do not use the phrase “reverse mortgage” in their own law at all. CT, IA, ME, MT, NJ and SC legislated against the term “reverse annuity mortgage”, so a table assembled by searching statute databases for the ordinary phrase misses every one of them. Iowa is the sharpest case: searching its code for “reverse mortgage” returns nothing at all, and its 1989 chapter is sitting there under the other name.

The reason all five survive is that this is a federal product with a state-law veneer, and the veneer is what is easy to tabulate.

What we could not establish, and are not going to invent

• 5 jurisdictions are not settled (AL, GA, HI, NH, NM): at least one question there could not be answered from a source published by the state itself. They are recorded as unresolved rather than counted as having no overlay, which would have been the flattering choice.
• State constitutions were the hardest documents to reach and several would not load at all. Texas is settled because its provision is well known and was read in full; a claim that some other state has no constitutional provision on this is weaker than the rest of the page and is flagged as such in the underlying data rather than printed here.
• No administrative-rule sweep. Where a state regulator has written a rule or bulletin that no statute hints at, this page would miss it. Statutes and, where reachable, the rules under them were searched; a regulator’s whole website was not.
• No court decisions. A state whose courts have read an existing consumer statute to cover reverse mortgages would not show up here.
• Nothing here is dated to your closing. Statutes change and several of these were amended recently. Every cite above links to the source it was read from so you can check it as of today.

Underneath this page is a 51-jurisdiction table with 255 cells, 83 of whose quotations were checked against the bytes of the document they were read from. Where a question could not be answered from a state-published source, the cell says so instead of guessing.

Sources

Every figure and every quotation above comes from one of these. Federal first, then the states, in the order they appear.

Related, and all federal rather than state: what heirs owe is on the heirs page, priced by the payoff calculator; a spouse who is not on the loan is on the non-borrowing spouse page; and the credit line is on its own page.

General consumer information, not financial, tax or legal advice. Statutes and rules are as published by the cited source on 2026-08-14 and change without notice; your own circumstances govern.