443.903. Reverse mortgage regulations.

MISSOURI STATUTES AND CODES

443.903. Reverse mortgage regulations.

Reverse mortgage regulations.

443.903. Notwithstanding any other provisions of law to the contrary,reverse mortgage loans shall be governed by the following:

(1) Payment in whole or in part is permitted without penalty at anytime during the period of the loan;

(2) An advance made under a reverse mortgage and interest on theadvances have priority over a lien filed after the closing of a reversemortgage loan;

(3) A reverse mortgage loan may provide for an interest rate which isfixed or adjustable and may also provide for interest that is contingent onappreciation in the value of the property;

(4) If a reverse mortgage loan provides for periodic advances to aborrower, the advances may not be reduced in amount or number based on anadjustment in the interest rate;

(5) Lenders failing to make loan advances as required in the loanagreement and failing to cure the default as required in the loan agreementshall forfeit an amount equal to the greater of two hundred dollars or onepercent of the amount of the loan advance the lender failed to make;

(6) The repayment requirement is also expressly subject to thefollowing additional conditions:

(a) Temporary absences from the home not to exceed sixty consecutivedays do not cause the mortgage to become due and payable;

(b) Temporary absences from the home exceeding sixty consecutivedays, but less than six months, do not cause the mortgage to become due andpayable so long as the borrower has taken prior action which secures thehome in a satisfactory manner;

(c) The lender's right to collect reverse mortgage loan proceeds issubject to the applicable statute of limitations for loan contracts.Notwithstanding the applicable statute of limitations for loan contracts,the statute of limitations commences on the date that the mortgage becomesdue and payable;

(d) The lender must prominently disclose any interest or other feesto be charged during the period that commences on the date that themortgage becomes due and payable and ends when repayment in full is made;

(7) The following fees and charges may be charged to the borrower,and financed by the lender, in connection with a reverse mortgage loan,except for loans insured or guaranteed by agencies of the federalgovernment in which case federal law or regulation shall apply:

(a) A nonrefundable origination fee not to exceed two percent of theprincipal;

(b) Fees and charges prescribed by law actually and necessarily paidto public officials for perfecting, releasing or satisfying a securityinterest related to the reverse mortgage loan;

(d) Bona fide closing costs paid to third parties, which shallinclude:

a. Fees or premiums for title examination, title insurance or similarpurposes, including surveys;

b. Fees for preparation of a deed, settlement statement or otherdocuments;

c. Fees for notarizing deeds and other documents;

d. Appraisal fees; and

e. Fees for credit reports;

(e) A charge for insurance against loss of, or damage to, propertywhere no such coverage already exists;

(f) Fixed monthly servicing fees, repair administration fees andpayment plan change fees;

(8) As a convenience to the borrower, reverse mortgage loanapplications may be taken by the lender over the telephone or at theborrower's home and reverse mortgage loans may be closed by mail or at atitle company's office.