In addition to federal laws regulating reverse mortgage loans, 24 states plus the District of Columbia have their own laws that govern how these loans are handled within that state. Many state-level regulations mirror those of the federal government for federally-backed 澳洲幸运5🔯官方开奖结果体彩网:home equity conversion mortgages (HECMs🌞). Others may apply to nonfederal reverse mortgage loans, such as single-p🅰urpos﷽e reverse mortgages and proprietary reverse mortgages.

In other cases, state law expands on or goes beyond federal law. Where state-level reverse mortgage rules appear in state law codes varies. Sometimes, they are listed as part of banking laws. Other times, they appear among real estate or mortgage rules. The state of Texas uniquely codified reverse mortgage law as an amendment to the state constitution in 1997.

Sta♊tes (and D.C.) with Proprietary Reverse Mortgage Laws

Here are states and the District of Columbia with 澳洲幸运5官方开奖结果体彩网:proprietary reverse mortgage laws, including a brief des🍌c🐟ription of what each’s laws cover.

Arizona 2024 Title 6 — Banks and Financial Institutions 🍃Chapter 17 — Reverse Mortga꧅ges

The Arizona statute includes financial counseling requirements, 澳洲幸运5官方开奖结果体彩网:disclosures, provisions, repayment conditions, borrower’s liability, prohibited practices, enforcement procedures, and lien priority.

Arkansas 2023 Title 23 — Public Utilities and Regulated Industries Subtitle 2 — Financ🌄ial Institution♔s and Securities Chapter 54 — Reverse Mortgage Protection Act

The act applies to loans enacted after Jan. 1, 2006. The legislation includes provisions for reverse mortgages, how loan proceeds are treated, required disclosures, lien priority, default procedures, and remedies for borrowers if the lender fails to provide proceeds.

C✤alifornia 2023 California Code Civil Code — CIV Division 3 — Obligation Part 4 — Obligations Arising from Particular Transaction Title 4 — Loan Chapter 8 ඣ— Reverse Mortgages

California civil code generally follows federal rules but deviates from federal guidelines by specifying the following repayment conditions:

• Being absent from the home for 60 consecutive days or less will not cause your reverse mortgage to be immediately due and payable.
• Your mortgage, likewise, will not be due and payable if you are absent for more than 60 consecutive days but less than one year provided that you have secured and protected the home to the satisfaction of your lender, as specified in loan documents.
• Your lender’s right to collect reverse mortgage loan proceeds is subject to the applicable statute of limitations for written loan contracts, which, barring any other provision of law, begins on the date that your reverse mortgage loan becomes due and payable as stated in the loan agreement.
• Your lender must disclose in the loan agreement any interest rate or other fees that apply once your loan becomes due and payable and end when your loan has been repaid in full.

Colorado 2023 Colorado Revised Statutes Title 11 — Financial Institutions Articl♕e 38. Reverse Mortgages

The article's purpose is to authorize reverse mortgages and expressly relieve reverse 澳洲幸运5官方开奖结果体彩网:mortgage lenders and borrowers from compliance with inappropriate statutory requirements. Topics covered include prepayment, liens, interest, lender default, repayment, the inapplicability of related statutes, disclosures, treatment of proceeds, and counseling requirements.

Connecticut 2023 Connecticut General Statutes Title 36a — The Banking Law of Connecticut Chapter 665 — Powers, Loans, and Investments Section 36a-267 — Reveᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚrse Annuity Mortgage Loans. Counseling, Certification Requirements. Penalties for Violations.

The statute requires the lender to advise the borrower of counseling requirements and verify that counseling has taken place. It also provides penalties for violations.

Delaware 2024 Dela𝔉ware Code Title 5 — Bank𝓰ing Chapter 21. Mortgage Loan Brokers § 2118. Reverse mortgages

The statute defines an independent counseling agency, how reverse mortgage loan proceeds are disbursed, and states that no fee shall be accepted except standard specified fees named in the statute.

Hawaii 2021 Hawa🎐ii Revised Statutes Title 28. Property 506.✨ Mortgages of Real Property or Fixtures 506-10 Reverse Mortgage Loan

The statute requires counseling before an application for a reverse mortgage and certification that counseling has taken place. It also establishes penalties for violations of this statute and defines reverse mortgages.

Indiana 2024 Indiana Code Title 24. Trade Regulation 📖Article 4.4. First Lien Mortgage Lending Chapter 2. Miscellaneous 24-4.4-2-503. Reverse Mortgages; Pamphlet; Counseling Required for Debtor

This Indiana code requires counseling for HECMs and other reverse mortgages. It defines a counseling agency and includes certification of counseling requirements before an application for a reverse mortgage can be accepted.

Louisiana 2023 Louisia♐na Laws Revised St꧅atutes Title 6 — Banks and Banking — RS 6:1101–1104 Reverse Mortgages

These statutes establish reverse mortgage requirements, including counseling, define a commitment cooling-off period, and list lender duties to elders.

Maryland 2024 Maryland Statutes 💃C💯ommercial Law Title 12 — Credit Regulations Subtitle 12 — Reverse Mortgage Loans Act

This legislation defines payment plan requirements, requires adherence to federal law, notes the inapplicability of certain federal provisions (uninsured loans), lists requirements for purchasers of reverse mortgages, lists counseling requirements, and defines penalties for violations of the act.

Minnesota 2023 Minnesota Statutes Chapters 245–267 — Public Welfare and Related Activities Chapter 256 — Human ꦓServices Section 256.99 — Reverse Mortgage Proceeds Disregarded

These statutes state that proceeds from a reverse mortgage loan cannot be used to determine your eligibility for medical assistance, Minnesota supplemental assistance, general assistance, general assistance medical care, or any federal or state low-interest loan or grant. There is no time limit on the application of this section of Minnesota law.

Missouri 2024 Missouri Revised Statutes Title XXIX — Ownership and Conveyance of Property Chapter 44💃3 — Mortgages, Deeds of Trust, and Mortgage Brokers — Reverse Mortgage Act

These Missouri statutes list regulations that apply to reverse mortgages—that reverse mortgages may be made regardless of certain other transactions, including limited use of reverse mortgage proceeds, limits on future loans, prohibitions on balloon payments, and other named transactions. They describe the treatment of payments received (not taxable as income) and counseling requirements. 

North Carolina 2023 North Carolina General Statutes Chapter 53 — Regulatio𝓰n of Financial Services Article 2🐓1 — Reverse Mortgages

These statutes cover authority and procedures governing reverse mortgage loans, application of rules, interest, taxes, insurance, and assessments, renegotiation of loan, limits on borrowers’ liability, disclosures of loan terms, information required of lender, effects of lender’s default, repayment of borrower’s default, time for initiation of 澳洲幸运5官方开奖结果体彩网:foreclosure, counseling requirements, prohibitions, requirement for contracts for shared 澳洲幸运5官方开奖结果体彩网:appreciation or shared value, commissioner’s authority to enforce; penalties, and appeals procedure.

Nebraska 2024 Nebraska Revised Statu♍tes Chapter 45 — Interest, Loans, and Debt 45-1068 — Reverse-Mortgage Loan; Rules Governing; How Made or Acquired; Charges Authorized; Forfeiture by Lender

The Nebraska rules define a reverse mortgage, list repayment rules and interest calculation, stipulate no limit on use of proceeds, define loan origination fee (2%), and penalty for lenders who fail to advance proceeds.

N🔜ew York 2023 New York Laws RPP — Real Property Article 8 — Conveyances aওnd Mortgages 280 Reverse Mortgages

New York laws cover reverse mortgage loans for people age 60 or older, people age 70 or older, federal HECMs, and federal HECM default and foreclosure regulations are all covered under this article.

Rhode Island 2021 Rhode Island General La♓ws Title 34 — Property Chapter 34-25.1 — Reverse Mortgages

These laws cover priority of reverse mortgages over encumbrances not previously recorded, relinquishment of security as to additional future advances—stipulation as to amount due, discharge of reverse mortgage, mortgages to which this chapter applies, reverse mortgage loan requirements, mortgagees authorized to take reverse mortgages, required counseling, pre-closing disclosures, annual account statements and other required disclosures, three-day cooling-off period, rules for attorneys-in-fact and guardians, ability of agencies to promulgate additional regulations, rules for property held in name or trust, and notice that the laws shall be liberally interpreted to ensure that borrowers are fully aware of the ramifications of taking out a reverse mortgage.

South Carol🐟ina 2023 South Carolina Code of Laws Title 29 — Mortgages and Other Liens Chapter 4 — Reverse Mortgages

These laws define reverse mortgages, list rules governing the same, specify that reverse mortgages are authorized without regard to other types of mortgage transactions, exempt reverse mortgage proceeds from consideration for means-tested programs, and provide for mandatory counseling.

South Dakota 2023 South Dakota Codified Laws Title 54 — Debtor🔴 and Creditor Chapter 12 — ꦑReverse Mortgage Loans

Codified laws define reverse mortgages, list rules for reverse mortgage loans, and specify how loan payments are made and how to handle reverse mortgage funds that haven't been disbursed.

Tennessee 2020 Tennessee Code Title 47 — Commercial Instruments and Transactions Chapter 30 — Hom💦e Equity Conversion Mortgages

The code defines authorized lenders, requires lender compliance, defines interest payments, authorizes requirements for borrowers to pay certain taxes, premiums, and assessments, defines fees, calculates outstanding loan balances, and covers prepayment. Additional topics include calculating the amount the borrower owes, when the loan is due, and the enforcement of debt. Lender requirements are also covered, including an annual statement of account and what happens when the lender defaults. Terms and conditions of borrower default are covered, as are notice of foreclosure, and future advances are exempted from Chapter 28 of this code. Finally, the codes list prohibited acts, violations, and legislative intent of the code and discuss Fannie Mae's reverse mortgage loans.

Texas 1997 Amendment to Tex🙈as Constitution — Section 50 — Homestead; Protection from Fo𓄧rced Sale; Mortgages, Trust Deeds, and Liens

Reverse mortgage law in Texas is codified in the Texas Constitution via an amendment written and passed in 1997. The amendment lists all requirements and conditions under which a reverse mortgage may be written in the state of Texas and is extensive law.

Utah 2024 Utah Code Title 57 — Real Estate Chapter 28 — Utah Reverse♚ Mortgage Act

Utah code lists all requirements and conditions for a reverse mortgage loan, including definitions, disclosures, counseling requirements, costs and repayment, a cooling-off period, and information about federally insured reverse mortgage loans.

Vermont 2024 Vermont Statutes Title 8 — Banking and Insurance Chapter 200 — Consumer Protection — Subc🐼𒆙hapter 7: Reverse Mortgages

Statutes define reverse mortgages, require counseling, ban a required purchase of 澳洲幸运5官方开奖结果体彩网:an annuity with loan proceeds, and stipulate that only federally approved reverse mortgage lenders may write a reverse mortgage in the state of Vermont.

West Virginia🤡 2023 West Virginia Code Chapter 47. 💮Regulation of Trade Article 24. The Reverse Mortgage Enabling Act

West Virginia code defines reverse mortgages, lists general rules, specifies the inapplicability of related statutes and law, exempts borrowers from the consideration of reverse mortgage proceeds for public benefit programs, provides for mandatory counseling, places reverse mortgage loans under the authority of the commissioner of banking, and states that anyone making a reverse mortgage under federal regulations is exempt from this code.

Wisconsin 2023 Wisconsin Statutes & A🃏nnotations Chapter 138 — Money and Rates of Interest. 138.058 — Reverse Mortgage Loans

These statutes allow lenders to enter reverse mortgages that meet federal requirements and specify how reverse mortgage proceeds are treated with regard to public benefits.

Washington, D.C., 2023 District of Columbia Code Tit🦄le 42 — Real Property Chapter 27 — Housing Finance Agency Subchapter III — Operations of the Agency § 42–2703.07a. Reve🀅rse Mortgage Foreclosure Prevention Program

The statute creates a reverse mortgage foreclosure prevention program to assist homeowners with reverse mortgages who get behind in 澳洲幸运5官方开奖结果体彩网:property taxes and other financial obligations.

The Bottom Line

Twenty-four states and the District of Columbia have their own reverse mortgage regulations. Some expand on federal regulations for HECMs, and others apply to proprietary or 澳洲幸运5官方开奖结果体彩网:single-use reverse mortgages. Don’t assume that what you read about natio💖nal reverse mortgage regulations will apply exactly to the one you may be considering without checking your state’s rules.