Before taking your final application for a reverse mortgage, California law requires your lender to provide a list of at least 10 HUD-approved counseling agencies. More of these loans are made in California than in any other state. During fiscal year 2025, lenders here insured 5,023 HECMs, and they insured 3,697 from October 2025 to August 2026. Among those 3,697 loans, 786 hit the $1,249,125 national lending limit that applied in 2026.
How the 2009 Reverse Mortgage Elder Protection Act shields you
Through Assembly Bill 329 in Chapter 236 of the 2009 statutes, lawmakers updated two parts of the Civil Code: sections 1923.2 and 1923.5. Section 1923.2 says the lender or anyone connected to the loan can't pay the counseling agency you choose. This way, the guidance you get stays independent. California is home to 17 HUD-approved counseling agencies that you can turn to.
Nobody involved in originating the loan, including the lender, can force you to purchase an annuity as a loan condition. An annuity is an insurance contract that sends you money over a period of time. Any reverse mortgage California homeowners take out can be repaid, fully or partially, at any time with no prepayment penalty. When you pay back a loan ahead of schedule, some lenders add a charge called a prepayment penalty.
Can you stay away from home for 60 days with a California HECM?
Your loan isn't made due and payable if you're gone for as many as 60 consecutive days. Trips and hospital stays of 60 days or less are covered by Civil Code section 1923.2. Absences that last longer, under 1 year, are also covered if you secure the home in a way your lender accepts. Before you take a long trip, speak with your lender so you don't overlook their security requirements.
Postponing taxes through the $57,002 Property Tax Postponement Program
Rules from the federal Consumer Financial Protection Bureau, which apply nationwide, require you to stay current on property taxes and homeowners insurance for a HECM. You're also required to live in the home as your main residence and maintain it well. Stay current on your property taxes. If that happens, your loan can go into default, so getting help with taxes is important.
The State Controller's Office allows seniors, blind people and people with disabilities to postpone the current year's property taxes on their primary home. You need a household income no higher than $57,002 and equity that's at least 40 percent to qualify. The amount of your home's value you hold debt-free is your equity. For the 2026 to 2027 program, you can file starting October 1, 2026, and the deadline is February 10, 2027. Postponed taxes are backed by a lien, which is a legal claim on your home that has to be repaid someday.
A San Mateo County page about the state program says you can't have a reverse mortgage to be eligible. If you get a reverse mortgage later, any postponed taxes become due. Before you try to combine the 2 programs, reach out to the State Controller's Office.
How do lenders get supervised by the Department of Financial Protection and Innovation?
Financial services, products and professionals throughout the state answer to California's Department of Financial Protection and Innovation (DFPI). This includes California's reverse mortgage lenders: from October 2025 through August 2026, 633 active companies insured HECMs there. Complaints between you and a financial institution the agency regulates go to its Consumer Services Office when a dispute comes up. The department's website has a dedicated Submit a Complaint page for you to use.
