The general assembly hereby finds that Colorado’s elderly homeowners should have the opportunity and be permitted to meet their financial needs by accessing the equity in their homes through a reverse mortgage loan transaction. The general assembly further finds that many restrictions and requirements that exist to govern traditional mortgage loan transactions in Colorado are […]
As used in this article, unless the context otherwise requires: “Borrower” means the person receiving cash advances pursuant to the terms of and obligated for repayment of a reverse mortgage. “Person” includes plural as well as singular. “Independent counseling” means counseling by a person unaffiliated with the lender, including but not limited to a housing […]
Payment of a reverse mortgage, in whole or in part, shall be permitted without penalty at any time during the period of such reverse mortgage. Source: L. 92: Entire article added, p. 940, § 1, effective April 23.
All advances made under a reverse mortgage and all interest on such advances shall have priority over any lien arising after recording an instrument evidencing the lien arising from such reverse mortgage with the clerk and recorder of the county where the real property securing such reverse mortgage is located. Source: L. 92: Entire article […]
A reverse mortgage may provide for an interest rate which is fixed or adjustable and may also provide for interest that is contingent on the appreciation in the value of the home securing such reverse mortgage. If a reverse mortgage provides for periodic advances to a borrower, such advances shall not be reduced in amount […]
Any lender failing to make loan advances as required by the terms of the reverse mortgage, and failing to cure such a default as required by such terms, shall forfeit the right to collect any interest on such reverse mortgage and shall be liable for any civil damages arising from such default. This section shall […]
A reverse mortgage may become due and payable upon the occurrence of any one of the following events: The home securing the reverse mortgage is sold. The borrower ceases to occupy the home as a principal residence. Any fixed maturity date agreed to by the lender and the borrower is reached. An event occurs which […]
A reverse mortgage may be made or acquired without regard to the following provisions for other types of mortgage transactions set out in the statutes specified in this subsection (1): Any law of this state limiting loan-to-value ratios; Prohibitions on balloon payments pursuant to section 5-3-208, C.R.S.; Any law of this state limiting interest on […]
Any lender making reverse mortgage loans shall provide to a borrower prior to closing on such a loan a written statement of the projected total loan cost rate for all reverse mortgage loans except for reverse mortgage loans subject to federal “Truth in Lending Act”, as amended, total annual loan cost disclosure requirements. As used […]
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 means-tested programs of aid to individuals. Undisbursed funds under a reverse mortgage shall be treated as equity in a borrower’s home and not as proceeds from […]
No reverse mortgage shall be made by a lender unless the loan applicant attests, in writing, that the applicant has been advised by the lender to obtain independent counseling regarding the advisability of such applicant’s entering into a reverse mortgage transaction and that such applicant has either obtained such counseling or waived such counseling in […]
This article shall apply to all reverse mortgages entered into on and after July 1, 1992, and shall not invalidate any reverse mortgage entered into prior to July 1, 1992. Source: L. 92: Entire article added, p. 943, § 1, effective April 23.
