§ 57-28-204 — Independent counseling.

(1) As used in this section:

(1)(a) "Federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(a).
(1)(b) "Non-federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(b).
(2) A prospective borrower shall meet with an independent housing counselor:

(2)(a) for a federally-insured loan borrower, before the Federal Housing Administration assigns a case number to the borrower's loan; and
(2)(b) for a non-federally insured loan borrower, before the prospective borrower signs a reverse mortgage application.
(3) During the meeting described in Subsection (2):

(3)(a) the prospective borrower and the independent housing counselor shall discuss the financial impacts of a reverse mortgage, including:
(3)(a)(i) options other than a reverse mortgage that are or may become available to the prospective borrower;
(3)(a)(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
(3)(a)(iii) the financial implications, specific to the prospective borrower, of entering into a reverse mortgage; and
(3)(b) the independent housing counselor shall give the prospective borrower a written disclosure that states that a reverse mortgage may:
(3)(b)(i) have tax consequences;
(3)(b)(ii) affect the prospective borrower's eligibility for assistance under certain state and federal programs; and
(3)(b)(iii) impact the prospective borrower's estate and heirs.

Legislative History

Amended by Chapter 385, 2023 General Session