57-28-204. Independent counseling.

229 words·~1 min read·/ut/title-57/chapter-28/57-28-204

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/3/2023

(1)As used in this section:

(a)"Federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(a) .

(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:

(a)for a federally-insured loan borrower, before the Federal Housing Administration assigns a case number to the borrower's loan; and

(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):

(a)the prospective borrower and the independent housing counselor shall discuss the financial impacts of a reverse mortgage, including:

(i)options other than a reverse mortgage that are or may become available to the prospective borrower;

(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

(iii)the financial implications, specific to the prospective borrower, of entering into a reverse mortgage; and

(b)the independent housing counselor shall give the prospective borrower a written disclosure that states that a reverse mortgage may:

(i)have tax consequences;

(ii)affect the prospective borrower's eligibility for assistance under certain state and federal programs; and

(iii)impact the prospective borrower's estate and heirs.

Amended by Chapter 385 , 2023 General Session