(1) As used in this section:
(a) "Federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(a).
(b) "Non-federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(b).
(2) A prospective borrower shall meet with an independent housing counselor:
(a) for a federally-insured loan borrower, before the Federal Housing Administration assigns a case number to the borrower's loan; and
(b) for a non-federally insured loan borrower, before the prospective borrower signs a reverse mortgage application.
(3) During the meeting described in Subsection (2):
(a) the prospective borrower and the independent housing counselor shall discuss the financial impacts of a reverse mortgage, including:
(i) options other than a reverse mortgage that are or may become available to the prospective borrower;
(ii) other home equity conversion options that are or may become available to the prospective borrower, including sale-leaseback financing, a deferred payment loan, and a property tax deferral; and
(iii) the financial implications, specific to the prospective borrower, of entering into a reverse mortgage; and
(b) the independent housing counselor shall give the prospective borrower a written disclosure that states that a reverse mortgage may:
(i) have tax consequences;
(ii) affect the prospective borrower's eligibility for assistance under certain state and federal programs; and
(iii) impact the prospective borrower's estate and heirs.