Truth in Lending: 8.3.4.6.5 Reverse mortgages
Open-end reverse mortgages secured by the consumer’s dwelling are subject to the HELOC rules.160 Reverse mortgages typically only require repayment when certain events occur, such as the homeowner’s death. The payment disclosures will reflect that a single payment is due when one of the specified events happens.161 The single payment may be considered the “minimum periodic payment” and not a balloon payment. The creditor must disclose an example of the minimum periodic payment.