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Home Foreclosures: B.3.3 VA Guaranteed Loans Circulars and Handbook
The VA provides instruction to lenders and servicers of guaranteed loans through circulars and the VA Servicer Handbook. The Handbook outlines servicers’ responsibility with respect to loss mitigation, and the VA’s role with respect to monitoring servicer activity. The VA Servicer Handbook M26-4 is available at https://www.benefits.va.gov.
The VA Circulars provide up-to-date information on the guaranteed loan program, including the VA’s policy on:
Home Foreclosures: Introduction
This appendix is a summary of individual state laws relating to reverse mortgages. These statutes vary dramatically. Some states merely define reverse mortgages or leave their regulation to more general laws related to home-secured loans. Other states provide specific substantive and procedural protections to reverse mortgage borrowers in varying degrees.
Home Foreclosures: ALABAMA
Definition and Scope
No applicable law. There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Cooling Off Period: No applicable law.
Home Foreclosures: ALASKA
Alaska Stat. § 06.45.060; Alaska Admin. Code tit. 3, § 170
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Home Foreclosures: ARIZONA
Ariz. Rev. Stat. Ann. §§ 6-1701 to 6-1708
Definition and Scope
Home Foreclosures: ARKANSAS
Ark. Code Ann. §§ 23-54-101 to 23-54-109 (Reverse Mortgage Protection Act)
Definition and Scope
“Reverse mortgage” is a nonrecourse loan secured by a borrower’s principal residence that: (a) provides cash advances to a borrower based upon equity in the borrower’s residence; and (b) requires no payment of principal or interest until the entire loan becomes due and payable. § 23-54-103. Statute applies to reverse mortgages executed on or after January 1, 2006. § 23-54-102.
Home Foreclosures: CALIFORNIA
Cal. Civ. Code §§ 1923 to 1923.10 (West); Cal. Civ. Code §§ 2923.4 to 2923.7, 2924.9 to 2924.19 (West) (loss mitigation, non-judicial foreclosure); Cal. Fin. Code § 7504 (West) (savings associations)
Definition and Scope
Home Foreclosures: COLORADO
Colo. Rev. Stat. §§ 11-38-101 to 11-38-112; Colo. Rev. Stat. § 38-38-103.1 (loss mitigation)
Definition and Scope
Home Foreclosures: CONNECTICUT
Conn. Gen. Stat. §§ 8-265i, 36a-265, 49-2; Conn. Gen. Stat. §§ 49-31k to 49-31o (foreclosure mediation program); Conn. Agencies Regs. § 17a-392-6(b)
Definition and Scope
Home Foreclosures: DELAWARE
Del. Code Ann. tit. 5, §§ 2244 (licensed lenders), 2118(a) (mortgage loan brokers)
Definition and Scope
Mortgage loans, the proceeds of which are disbursed to the mortgagor in one or more lump sums, or in equal or unequal installments, and which requires no repayment until a future time, upon the earliest occurrence of one or more events specified in the reverse mortgage loan contract. § 2244(a)(2) (licensed lenders), § 2118(a)(2) (mortgage loan brokers).
Home Foreclosures: DISTRICT OF COLUMBIA
D.C. Code §§ 26-1151.01(7), 42-815.02
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Home Foreclosures: FLORIDA
Fla. Stat. §§ 420.101, 420.102, 697.04
Definition and Scope
Housing Development Corporations established under Florida law are authorized to make, service, and manage home equity conversion mortgages, defined as a reverse mortgage loan made to an elderly homeowner which is secured by a lien on real property. §§ 420.101, 420.102.
Origination
Authorized Lenders: No applicable law.
Home Foreclosures: GEORGIA
Ga. Code Ann. § 50-26-17
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Cooling Off Period: No applicable law.
Home Foreclosures: HAWAII
Haw. Rev. Stat. §§ 506-10, 454M-5.5; Haw. Code R. § 17-1725.1-59 (LexisNexis)
Definition and Scope
Home Foreclosures: IDAHO
Idaho Code §§ 45-1506C, 45-108 (future advances)
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Home Foreclosures: ILLINOIS
765 Ill. Comp. Stat. § 77/78; 765 Ill. Comp. Stat. §§ 945/1 to 945/40 (Reverse Mortgage Act); 815 Ill. Comp. Stat. § 137/65
Definition and Scope
Home Foreclosures: INDIANA
Ind. Code §§ 24-4.4-1-201, 24-4.4-1-301, 24-4.4-2-201, 24-4.4-2-401, 24-4.4-2-502, 24-4.4-2-503, 28-15-11-9, 32-30-10.5-10; 405 Ind. Admin Code 2-3-14
Definition and Scope
Home Foreclosures: IOWA
Iowa Code § 16.53; Iowa Code §§ 528.1 to 528.9 (Alternative and Reverse Annuity Mortgage Loan Act); Iowa Code § 535A.1
Definition and Scope
Home Foreclosures: KANSAS
Kan. Stat. Ann. § 58-2336 (future advances)
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Home Foreclosures: KENTUCKY
Ky. Rev. Stat. Ann. § 286.8-010(28) (West)
Definition and Scope
There is no explicit definition of “reverse mortgage.”
Origination
Authorized Lenders: No applicable law.
Disclosures: No applicable law.
Application and Approval: No applicable law.
Home Foreclosures: LOUISIANA
La. Stat. Ann. §§ 6:1083, 6:1086, 6:1101 to 6:1104
Definition and Scope
Home Foreclosures: MAINE
Me. Stat. tit. 9-a, § 1-202(8); Me. Stat. tit. 14, § 6321-A; Me. Stat. tit. 30-A, § 4942
Definition and Scope