As part of the Art 81 proceeding, petitioner sought to establish that the AIP lacked capacity when she entered into a reverse mortgage and also that she has signed the agreement under duress.
The court shifted the burden of proof to the lender to show that the lender has complied with its duty under the National Housing Act to fully counsel the borrower and to show that the lender knew that the borrower had capacity to enter in to the agreement, and, then, when the lender could not meet this burden, the court voided the reverse mortgage.
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