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Truth in Lending: 34(a)(5)(v) Counseling fees.

Editor’s Note424

1. Financing.425 Section 1026.34(a)(5)(v) does not prohibit a creditor from financing the counseling fee as part of the transaction for a high-cost mortgage, if the fee is a bona fide third-party charge as provided by § 1026.32(b)(5)(i).

Truth in Lending: 34(a)(5)(vi) Steering prohibited.

Editor’s Note426

1. An example of an action that constitutes steering would be when a creditor repeatedly highlights or otherwise distinguishes the same counselor in the notices the creditor provides to consumers pursuant to § 1026.34(a)(5)(vii).427

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: 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: MAINE

Me. Stat. tit. 9-a, § 1-202(8); Me. Stat. tit. 14, § 6321-A; Me. Stat. tit. 30-A, § 4942

Definition and Scope