§ 53-262. Renegotiation of loan; calculation of outstanding balance; prepayment. - North Carolina Statutes

§53‑262.  Renegotiation of loan; calculation of outstanding balance;prepayment.

(a)        If a reversemortgage loan contract allows for a change in the payments or payment options,the lender may charge a reasonable fee when payments are recalculated.

(b)        The outstandingloan balance shall be calculated by adding the current totals of itemsdescribed in subdivisions (1) through (4) below, and subtracting the currenttotals of all reverse mortgage loan payments made by the borrower to thelender:

(1)        The sum of alldisbursements made by the lender to the borrower, or to another party on theborrower's behalf.

(2)        All taxes,assessments, insurance premiums, and other similar charges paid to date by thelender under G.S. 53‑261 and not reimbursed by the borrower within 60days of the date payment was made by the lender.

(3)        All actual closingcosts the borrower has deferred, if a deferral provision is contained in theloan agreement.

(4)        The total accruedinterest to date.

(c)        Prepayment of thereverse mortgage loan, in whole or part, shall be permitted without penalty atany time during the term of the loan. (1991, c. 546, s. 1; 1995, c.115, s. 1.)