(1) Before a prospective borrower signs a reverse mortgage application, the prospective borrower shall meet with an independent housing counselor.
(2) During the meeting described in Subsection (1): (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.
(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
(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.
(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.
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