§14A-3-309.5. Additional disclosures for reverse mortgages.
358 words·~2 min read·
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(1)In addition to the disclosures required under Title 14A of the Oklahoma Statutes, for each reverse mortgage, the creditor shall, not less than three
(3)days prior to consummation of the transaction, disclose to the consumer in conspicuous type 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 shall 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 shall include:
(a)statements of the annual interest rates for not less
than three projected appreciation rates and not less
than three credit transaction periods, as determined
by the Administrator, including:
(i)a short-term reverse mortgage;
(ii)a term equaling the actuarial life expectancy of
the consumer; and
such longer term as the Administrator deems
appropriate; and
(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.
(2)In determining the projected total cost of the mortgage to be disclosed to the consumer under subsection
(1)of this section, the creditor shall take into account:
(a)any shared appreciation or equity that the lender
will, by contract, be entitled to receive;
(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;
(c)all payments to and for the benefit of the consumer,
including, in the case in which an associated annuity
is purchased, whether or not 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
(d)any limitation on the liability of the consumer under
reverse mortgage transactions, such as nonrecourse
limits and equity conservation agreements. Added by Laws 2000, c. 217, § 13, eff. July 1, 2000.