§ 6-1708 – Lien priority and validity
6-1708. Lien priority and validity The full amount secured by a reverse mortgage security interest has the same priority over any other lien on the property as if the full amount had been disbursed on the date of the loan closing regardless of the actual date of any disbursement. The amount secured by the security […]
§ 6-1411 – Disclosure requirements
6-1411. Disclosure requirements Every licensee shall make available to agents, brokers and managing general agents disclosures as prescribed by title I of the consumer credit protection act (15 United States Code sections 1601 through 1667) in both English and Spanish. All premium finance agreements shall disclose in English and Spanish, in close proximity to the […]
§ 6-1705 – Prepayment; repayment conditions
6-1705. Prepayment; repayment conditions A. Prepayment, in whole or in part, shall be permitted without penalty at any time during the term of a reverse mortgage. B. For the purposes of this section, penalty does not include: 1. Any fees, payments or other charges that would otherwise be due when the reverse mortgage becomes due […]
§ 6-1412 – Limitation on interest and other charges
6-1412. Limitation on interest and other charges A. It is unlawful for a licensee to charge, contract for, receive or collect an interest charge other than as permitted by this article. B. The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in […]
§ 6-1706 – Borrower liability; prohibited practices; investments; annuities
6-1706. Borrower liability; prohibited practices; investments; annuities A. The borrower is not liable for any difference between the net amount of the borrower’s remaining debt under the reverse mortgage and the amount recovered by the originator from the net sales proceeds from the dwelling that is subject to the reverse mortgage. This amount is based […]
§ 6-1413 – Other charges allowed
6-1413. Other charges allowed A. A licensee may contract for, and if so contracted for, may collect a service charge for financing or arranging the financing of premiums under the agreement in an amount not to exceed ten dollars for each premium finance agreement. The service charge need not be refunded on cancellation, prepayment or […]
§ 6-1707 – Enforcement
6-1707. Enforcement A. An act or practice in violation of this chapter is an unlawful practice under section 44-1522 and is subject to enforcement through private action and prosecution by the attorney general. B. Any provision of a reverse mortgage agreement that violates this chapter is unenforceable against the borrower. C. A private action against […]
§ 6-1414 – Splitting of premium finance agreement prohibited
6-1414. Splitting of premium finance agreement prohibited No agent or broker or premium finance company shall induce an insured to become obligated under more than one premium finance agreement for the purpose of obtaining a higher rate of interest than would otherwise be permitted by this chapter or obtaining more than one service charge.
§ 6-1415 – Cancellation of insurance contract upon default
6-1415. Cancellation of insurance contract upon default A. If a premium finance agreement contains a power of attorney enabling the licensee to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the licensee unless the cancellation is in accordance with this section. B. The […]
§ 6-1416 – Return premiums
6-1416. Return premiums A. Except as provided in subsection B, if a financed insurance policy is cancelled by any party, the insurer shall return the gross unearned premiums due under the policy directly to the premium finance company for the account of the insured as soon as reasonably possible, but not more than twenty days […]