9-A §8-206-B. Reverse mortgages - Maine Statutes

Title 9-A: MAINE CONSUMER CREDIT CODE

Article 8: TRUTH-IN-LENDING

Part 2: DISCLOSURE REQUIREMENTS

§8-206-B. Reverse mortgages

1. In addition to the disclosures required under this article, for each reverse mortgage the creditor shall provide to the consumer, at least 3 days prior to the consummation of the transaction, a disclosure in conspicuous type of a good faith estimate of the projected total cost of the mortgage to the consumer expressed as a table of annual interest rates. Each annual interest rate must be based on a projected total future credit extension balance under a projected appreciation rate for the dwelling and a term for the mortgage. The disclosure must include:

A. Statements of the annual interest rates for at least 3 projected appreciation rates and at least 3 credit transaction periods, as determined by the administrator, including:

(1) A short-term reverse mortgage;

(2) A term equaling the actuarial life expectancy of the consumer; and

(3) Any longer term the administrator determines appropriate; and [1995, c. 326, §5 (NEW).]

B. A statement that the consumer is not obligated to complete the reverse mortgage transaction merely because the consumer has received the disclosure required under this section or has signed an application for the reverse mortgage. [1995, c. 326, §5 (NEW).]

[ 1995, c. 326, §5 (NEW) .]

2. In determining the projected total cost of the mortgage to be disclosed to the consumer under subsection 1, the creditor shall take into account:

A. Any shared appreciation or equity that the lender is, by contract, entitled to receive; [1995, c. 326, §5 (NEW).]

B. All costs and charges to the consumer, including the costs of any associated annuity that the consumer elects or is required to purchase as part of the reverse mortgage transaction; [1995, c. 326, §5 (NEW).]

C. All payments to and for the benefit of the consumer including, when an associated annuity is purchased and whether or not that purchase is required by the lender as a condition of making the reverse mortgage, the annuity payments received by the consumer and financed from the proceeds of the loan, instead of the proceeds used to finance the annuity; and [1995, c. 326, §5 (NEW).]

D. Any limitation on the liability of the consumer under reverse mortgage transactions such as nonrecourse limits and equity conservation agreements. [1995, c. 326, §5 (NEW).]

[ 1995, c. 326, §5 (NEW) .]

SECTION HISTORY

1995, c. 326, §5 (NEW).