§ 23-54-101. Title
This chapter shall be known and may be cited as the “Reverse Mortgage Protection Act”.
§ 23-54-102. Applicability
This chapter applies to reverse mortgage loans executed on or after January 1, 2006.
§ 23-54-103. Definitions
As used in this chapter, “reverse mortgage” means a nonrecourse loan secured by a borrower’s principal residence that: (1) Provides cash advances to a borrower based upon the amount of equity in the borrower’s residence; and (2) Requires no payment of principal or interest until the entire loan becomes due and payable.
§ 23-54-104. Provisions of reverse mortgages
(a) A reverse mortgage loan: (1) (A) Shall permit prepayment in whole or in part without penalty at any time during the term of the reverse mortgage loan. (B) For the purposes of this subdivision (a)(1), “penalty” does not include any fees, payments, or other charges that would have otherwise been due upon the maturity […]
§ 23-54-105. Treatment of loan proceeds
To the extent that implementation of this section does not conflict with federal law: (1) Reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under programs of aid to individuals; and (2) Undisbursed reverse mortgage funds […]
§ 23-54-106. Loan application — Disclosures
(a) No reverse mortgage loan application shall be taken by a lender unless the loan applicant has received from the lender the following plain language statement, in conspicuous 16-point type or larger, advising the prospective borrower about counseling prior to obtaining the reverse mortgage loan: (b) Before giving the prospective borrower the statement described in […]
§ 23-54-107. Lien
(a) A reverse mortgage shall constitute a lien against the subject property to the extent of all advances made under the reverse mortgage and all interest accrued on the advances. (b) The lien shall have priority over any lien filed after recordation of the reverse mortgage.
§ 23-54-108. Default
(a) The reverse mortgage loan may become due and payable upon the occurrence of any one (1) of the following events: (1) The home securing the loan is sold or title to the home is otherwise transferred; (2) All borrowers cease occupying the home as a principal residence, except as provided in subsection (b) of […]
§ 23-54-109. Remedies
(a) A lender who fails to make loan advances as required in the loan documents shall pay the borrower triple the amount wrongfully withheld plus interest at the maximum legal rate. (b) No arrangement, transfer, or lien subject to this chapter shall be invalidated solely because of the failure of a lender to comply with […]