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7 LONG TITLE
8 General Description:
9 This bill makes changes to reverse mortgage requirements.
10 Highlighted Provisions:
11 This bill:
12 ▸ eliminates the age requirement for a reverse mortgage borrower;
13 ▸ changes the deadline for a prospective borrower to meet with an independent
14 housing counselor from before signing a reverse mortgage application to before
15 closing on a reverse mortgage; and
16 ▸ eliminates the requirement for a seven-day cooling off period.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 57-28-202, as enacted by Laws of Utah 2015, Chapter 290
24 57-28-204, as enacted by Laws of Utah 2015, Chapter 290
25 REPEALS:
26 57-28-207, as enacted by Laws of Utah 2015, Chapter 290
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28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 57-28-202 is amended to read:
30 57-28-202. Borrower requirements.
31 A borrower shall[
32 secures the reverse mortgage as a principal residence.
33 Section 2. Section 57-28-204 is amended to read:
34 57-28-204. Independent counseling.
35 (1) Before a prospective borrower [
36 the prospective borrower shall meet with an independent housing counselor.
37 (2) During the meeting described in Subsection (1):
38 (a) the prospective borrower and the independent housing counselor shall discuss the
39 financial impacts of a reverse mortgage, including:
40 (i) options other than a reverse mortgage that are or may become available to the
41 prospective borrower;
42 (ii) other home equity conversion options that are or may become available to the
43 prospective borrower, including sale-leaseback financing, a deferred payment loan, and a
44 property tax deferral; and
45 (iii) the financial implications, specific to the prospective borrower, of entering into a
46 reverse mortgage; and
47 (b) the independent housing counselor shall give the prospective borrower a written
48 disclosure that states that a reverse mortgage may:
49 (i) have tax consequences;
50 (ii) affect the prospective borrower's eligibility for assistance under certain state and
51 federal programs; and
52 (iii) impact the prospective borrower's estate and heirs.
53 Section 3. Repealer.
54 This bill repeals:
55 Section 57-28-207, Cooling off period -- Closing.