Reverse mortgage loans may be made or acquired without regard to the following provisions for other types of mortgage transactions:
(1) limitations on the purpose and use of future advances or any other mortgage proceeds;
(2) limitations on future advances to a term of years, or limitations on the term of credit line advances;
(3) limitations on the term during which future advances take priority over intervening advances;
(4) requirements that a maximum mortgage amount be stated in the mortgage;
(5) limitations on loan-to-value ratios;
(6) prohibitions on balloon payments;
(7) prohibitions on compounded interest and interest on interest;
(8) interest rate limits under the usury statutes; and
(9) requirements that a percentage of the loan proceeds must be advanced prior to loan assignment.
HISTORY: 1994 Act No. 376, Section 1.
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