This bill establishes pre-loan counseling requirements and borrower rights of rescission for reverse mortgage loans in New Jersey. It defines "borrower" as any individual inquiring about or applying for a reverse mortgage, and "lender" as a banking institution authorized to issue such loans. Before accepting a final application or assessing fees, lenders must provide borrowers with a written checklist detailing critical issues to discuss with a reverse mortgage counselor, including the impact of unexpected events on loan costs, alternative financial options, and the implications of using loan proceeds for other financial products. Lenders are also required to supply the names and contact information of at least five approved counseling agencies and must ensure that these agencies do not have conflicts of interest.

Additionally, the bill mandates that lenders obtain a certification from borrowers confirming they have received in-person counseling that covers the required topics. If a borrower has not received this counseling, the reverse mortgage will be deemed void and unenforceable. The bill also grants borrowers a seven-day right of rescission after accepting the lender's written commitment, during which they cannot be compelled to close the loan. Lenders must inform borrowers of this right in writing. Non-compliance with these provisions may result in a $1,000 civil penalty payable to the borrower.