Section 205 – Costs and repayment.
Effective 5/12/2015 57-28-205. Costs and repayment. A lender may collect the following charges and fees in connection with the origination of a reverse mortgage: (1) the actual expenses that the lender incurs in originating and closing the reverse mortgage, including a mortgage broker’s fee if the mortgage broker and the lender do not share any […]
Section 206 – Disbursement.
Effective 5/12/2015 57-28-206. Disbursement. (1) Subject to Subsection (2) and except as provided in Subsection (3), a lender shall pay the loan proceeds of a reverse mortgage under a term payment option, a tenure payment option, or a line of credit payment option. (2) Under a term payment option or a tenure payment option, upon […]
Section 207 – Cooling off period — Closing.
Effective 5/12/2015 57-28-207. Cooling off period — Closing. (1) After a prospective borrower accepts, in writing, a lender’s written commitment to make a reverse mortgage, the lender may not bind the prospective borrower to the reverse mortgage earlier than seven days after the day on which the prospective borrower gives the written acceptance to the […]
Section 208 – Federally insured reverse mortgages.
Effective 5/12/2015 57-28-208. Federally insured reverse mortgages. When a lender makes a reverse mortgage that is federally insured by the United States Department of Housing and Urban Development, the lender satisfies the requirements described in Sections 57-28-202 through 57-28-206 if the lender complies with the federal requirements described in 12 U.S.C. Sec. 1715z-20 and 24 […]
Section 302 – Treatment of loan proceeds — Effect on assistance eligibility.
Effective 5/12/2015 57-28-302. Treatment of loan proceeds — Effect on assistance eligibility. For purposes of determining a borrower’s eligibility and benefits for a means-tested program of aid to individuals: (1) a reverse mortgage loan payment made to a borrower shall be treated as proceeds from a loan and not as income; and (2) undisbursed funds […]
Section 303 – Priority.
Effective 5/12/2015 57-28-303. Priority. (1) All amounts secured by a reverse mortgage have the same lien priority as the first disbursement under the reverse mortgage. (2) For purposes of Subsection (1), the amount secured by the reverse mortgage includes any payment to the borrower from the loan proceeds, regardless of the purpose of the payment. […]
Section 304 – Foreclosure.
Effective 5/10/2016 57-28-304. Foreclosure. Before a person initiates foreclosure proceedings on a reverse mortgage, the person shall: (1) send the borrower, by certified mail, return receipt requested, written notice that states the grounds for default and foreclosure; and (2) provide the borrower at least 30 days after the day on which the person sends the […]
Section 305 – Lender default.
Effective 5/12/2015 57-28-305. Lender default. (1) A lender who fails to make a loan advance on a non-federally insured reverse mortgage in accordance with the reverse mortgage agreement shall forfeit any right to repayment of the outstanding loan balance. (2) After a lender forfeits the lender’s right to repayment under Subsection (1), the reverse mortgage […]
Section 202 – Borrower requirements.
Effective 5/12/2015 57-28-202. Borrower requirements. A borrower shall: (1) be 62 years of age or older; and (2) occupy the dwelling that secures the reverse mortgage as a principal residence. Enacted by Chapter 290, 2015 General Session
Section 203 – Disclosures to borrower.
Effective 5/12/2015 57-28-203. Disclosures to borrower. A lender shall give a prospective borrower or a borrower the following written disclosures: (1) at the time the lender provides an application for a reverse mortgage to a prospective borrower: (a) a disclosure that explains any adjustable interest rate feature of the reverse mortgage, including: (i) the circumstances […]