State Codes and Statutes

Statutes > Nebraska > Chapter45 > 45-702_01

45-702.01. Reverse-mortgage loans; rules applicable;fees authorized; failure by licensee to make loan advances and cure default;forfeiture.(1)Reverse-mortgage loans shall be governed by the following rules without regardto the requirements set out elsewhere for other types of mortgage transactions:(a) Payment in whole or in part is permitted without penalty at any time duringthe period of the loan; (b) an advance and interest on the advance have priorityover a lien filed after the closing of a reverse-mortgage loan; (c) an interestrate may be fixed or adjustable and may also provide for interest that iscontingent on appreciation in the value of the residential real estate; and(d) the advance shall not be reduced in amount or number based on an adjustmentin the interest rate when a reverse-mortgage loan provides for periodic advancesto a borrower.(2)Reverse-mortgage loans may be made or acquired without regard to the followingprovisions for other types of mortgage transactions: (a) Limitations on thepurpose and use of future advances or any other mortgage proceeds; (b) limitationson future advances to a term of years or limitations on the term of creditline advances; (c) limitations on the term during which future advances takepriority over intervening advances; (d) requirements that a maximum mortgageamount be stated in the mortgage; (e) limitations on loan-to-value ratios;(f) prohibitions on balloon payments; (g) prohibitions on compounded interestand interest on interest; and (h) requirements that a percentage of the loanproceeds must be advanced prior to loan assignment.(3) A licensee may, in connectionwith a reverse-mortgage loan, charge to the borrower (a) a nonrefundable loanorigination fee which does not exceed two percent of the appraised value ofthe owner-occupied principal residence at the time the loan is made, (b) areasonable fee paid to third parties originating loans on behalf of the licensee,and (c) such other fees as are necessary and required, including fees forinspections, insurance, appraisals, and surveys.(4) Licensees failing to make loanadvances as required in the loan documents and failing to cure the defaultas required in the loan documents shall forfeit to the borrower an amountequal to the greater of two hundred dollars or one percent of the amount ofthe loan advance the licensee failed to make. SourceLaws 2010, LB892, § 5.

State Codes and Statutes

Statutes > Nebraska > Chapter45 > 45-702_01

45-702.01. Reverse-mortgage loans; rules applicable;fees authorized; failure by licensee to make loan advances and cure default;forfeiture.(1)Reverse-mortgage loans shall be governed by the following rules without regardto the requirements set out elsewhere for other types of mortgage transactions:(a) Payment in whole or in part is permitted without penalty at any time duringthe period of the loan; (b) an advance and interest on the advance have priorityover a lien filed after the closing of a reverse-mortgage loan; (c) an interestrate may be fixed or adjustable and may also provide for interest that iscontingent on appreciation in the value of the residential real estate; and(d) the advance shall not be reduced in amount or number based on an adjustmentin the interest rate when a reverse-mortgage loan provides for periodic advancesto a borrower.(2)Reverse-mortgage loans may be made or acquired without regard to the followingprovisions for other types of mortgage transactions: (a) Limitations on thepurpose and use of future advances or any other mortgage proceeds; (b) limitationson future advances to a term of years or limitations on the term of creditline advances; (c) limitations on the term during which future advances takepriority over intervening advances; (d) requirements that a maximum mortgageamount be stated in the mortgage; (e) limitations on loan-to-value ratios;(f) prohibitions on balloon payments; (g) prohibitions on compounded interestand interest on interest; and (h) requirements that a percentage of the loanproceeds must be advanced prior to loan assignment.(3) A licensee may, in connectionwith a reverse-mortgage loan, charge to the borrower (a) a nonrefundable loanorigination fee which does not exceed two percent of the appraised value ofthe owner-occupied principal residence at the time the loan is made, (b) areasonable fee paid to third parties originating loans on behalf of the licensee,and (c) such other fees as are necessary and required, including fees forinspections, insurance, appraisals, and surveys.(4) Licensees failing to make loanadvances as required in the loan documents and failing to cure the defaultas required in the loan documents shall forfeit to the borrower an amountequal to the greater of two hundred dollars or one percent of the amount ofthe loan advance the licensee failed to make. SourceLaws 2010, LB892, § 5.

State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter45 > 45-702_01

45-702.01. Reverse-mortgage loans; rules applicable;fees authorized; failure by licensee to make loan advances and cure default;forfeiture.(1)Reverse-mortgage loans shall be governed by the following rules without regardto the requirements set out elsewhere for other types of mortgage transactions:(a) Payment in whole or in part is permitted without penalty at any time duringthe period of the loan; (b) an advance and interest on the advance have priorityover a lien filed after the closing of a reverse-mortgage loan; (c) an interestrate may be fixed or adjustable and may also provide for interest that iscontingent on appreciation in the value of the residential real estate; and(d) the advance shall not be reduced in amount or number based on an adjustmentin the interest rate when a reverse-mortgage loan provides for periodic advancesto a borrower.(2)Reverse-mortgage loans may be made or acquired without regard to the followingprovisions for other types of mortgage transactions: (a) Limitations on thepurpose and use of future advances or any other mortgage proceeds; (b) limitationson future advances to a term of years or limitations on the term of creditline advances; (c) limitations on the term during which future advances takepriority over intervening advances; (d) requirements that a maximum mortgageamount be stated in the mortgage; (e) limitations on loan-to-value ratios;(f) prohibitions on balloon payments; (g) prohibitions on compounded interestand interest on interest; and (h) requirements that a percentage of the loanproceeds must be advanced prior to loan assignment.(3) A licensee may, in connectionwith a reverse-mortgage loan, charge to the borrower (a) a nonrefundable loanorigination fee which does not exceed two percent of the appraised value ofthe owner-occupied principal residence at the time the loan is made, (b) areasonable fee paid to third parties originating loans on behalf of the licensee,and (c) such other fees as are necessary and required, including fees forinspections, insurance, appraisals, and surveys.(4) Licensees failing to make loanadvances as required in the loan documents and failing to cure the defaultas required in the loan documents shall forfeit to the borrower an amountequal to the greater of two hundred dollars or one percent of the amount ofthe loan advance the licensee failed to make. SourceLaws 2010, LB892, § 5.