State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-270

§53‑270.  Prohibited acts.

Reverse mortgage lenders areprohibited from engaging in any of the following acts in connection with themaking, servicing, or collecting of a reverse mortgage loan:

(1)        Misrepresentingmaterial facts, making false promises, or engaging in a course ofmisrepresentation through agents or otherwise.

(2)        Failing to disbursefunds in accordance with the terms of the reverse mortgage loan contract orother written commitment.

(3)        Improperly refusingto issue a satisfaction of a mortgage.

(4)        Engaging in anyaction or practice that is unfair or deceptive, or that operates a fraud on anyperson.

(5)        Contracting for orreceiving shared appreciation or shared value, except as provided in G.S. 53‑270.1.

(6)        Closing a reversemortgage loan without receiving certification from a person who is certified asa reverse mortgage counselor by the State that the borrower has receivedcounseling on the advisability of a reverse mortgage loan and the various typesof reverse mortgage loans and the availability of other financial options andresources for the borrower, as well as potential tax consequences.

(7)        Failing to complywith this Article. (1991, c. 546, s. 1; 1995, c. 115, s. 1; 1998‑116,s. 1.)