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FOR IMMEDIATE RELEASE
September 5, 2006

For More Information, Contact:
Hema Sareen Mohan (650) 688-6384

GOVERNOR TO SIGN ELDER ABUSE BILL IN PALO ALTO


WHAT:
Governor Schwarzenegger announced today that he will hold a bill signing ceremony in Palo Alto to sign into law State Senator Joe Simitian’s (D-Palo Alto) SB 1609. 

Simitian’s SB 1609 is a bill to protect seniors from predatory lending practices and abuse in connection with reverse mortgages, a popular type of loan that allows seniors age 62 or older to receive cash by borrowing against the equity of their homes. 

SB 1609, which was submitted to Simitian in his annual “There Oughta Be A Law” contest, does three things to ensure that seniors are protected from fraud and abuse associated with reverse mortgages.  First, it requires that seniors receive financial counseling from a HUD approved counselor before applying for a reverse mortgage.  Second, it requires lenders to prepare loan documents in the language in which the reverse mortgage was negotiated.  Third, it prohibits lenders from requiring a borrower to purchase an annuity as a condition of the loan.
WHEN:
Tuesday, September 5, 2006 at 12:45 pm

WHERE:
Avenidas (Senior Center)
450 Bryant Street
Palo Alto
Public parking available just across the street.

HOW:
All credentialed reporters and photographers are invited.  Please bring certified media credentials.

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