§ 6-1702 – Financial counseling; counselor requirements
6-1702. Financial counseling; counselor requirements A. Adequate counseling under this chapter must be provided by a counselor who is an independent third party. B. To qualify as an independent third party, the counselor may not be associated with or compensated, directly or indirectly, by a party involved in any of the following: 1. Originating or […]
§ 6-1703 – Required disclosures; counseling
6-1703. Required disclosures; counseling A. Before accepting a final and complete application for a reverse mortgage or assessing any fees, the originator shall: 1. Provide the borrower with a list of at least five housing counseling agencies, including at least two housing counseling agencies that can provide counseling by telephone. 2. Receive from the borrower […]
§ 6-1410 – Form of premium finance agreement; notice
6-1410. Form of premium finance agreement; notice A. A premium finance agreement shall: 1. Be dated and signed by the insured and the printed portion of the agreement shall be in at least eight-point type. 2. Contain the name, place of business and mailing address of the agent or broker who is negotiating the related […]
§ 6-1704 – Reverse mortgage; provisions
6-1704. Reverse mortgage; provisions A. A reverse mortgage may provide for a fixed or variable interest rate or future sharing between the originator and the borrower of the appreciation in the value of the property, as agreed on by the originator and the borrower. B. The reverse mortgage agreement shall prominently disclose any interest rate […]
§ 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 […]