State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-264

§53‑264.  Disclosures of loan terms.

(a)        On forms prescribedby the Commissioner, all authorized lenders shall provide all of the followinginformation to the Commissioner for dissemination to all counselors who providecounseling to prospective reverse mortgage borrowers:

(1)        The borrower'srights, obligations, and remedies with respect to the borrower's temporaryabsence from the home, late payments by the lender, and payment default by thelender.

(2)        Conditions or eventsthat require the borrower to repay the loan obligation.

(3)        The right of theborrower to mortgage less than the full value of the home, if permitted by thereverse mortgage loan contract.

(4)        The projected totalannual percentage rate applicable under various loan terms and appreciationrates and interest rates applicable at sample ages of borrowers.

(5)        Standard closingcosts.

(6)        All service fees tobe charged during the term of the loan.

(7)        Other informationrequired by the Commissioner.

(8)        Information relatingto contracts for shared appreciation or shared value, as required by G.S. 53‑270.1.

(b)        Within 10 businessdays after application is made by a borrower, but not less than 20 businessdays before closing of the loan, lenders shall provide applicants with the sameinformation required in subsection (a) of this section, shall inform applicantsthat reverse mortgage counseling is required before the loan can be closed, andshall provide the names and addresses of counselors listed with theCommissioner's office.  (1991, c. 546, s. 1; 1995, c. 115, s. 1; 1998‑116,s. 4.)