Reverse Mortgage Act

The Reverse Mortgage Act establishes the framework governing reverse mortgage lending, defining who may make such loans and the procedures that apply to them. It regulates the substantive terms of these loans — interest, responsibility for taxes, insurance, and assessments, renegotiation and prepayment, limits on borrower liability, and shared appreciation or shared value arrangements — while requiring lenders to disclose loan terms and provide information, and conditioning loans on borrower counseling. It also sets out the consequences of default by either the lender or the borrower, including when foreclosure may be initiated, bars specified practices, and gives a commissioner authority to enforce the act and impose penalties, subject to appeal.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.