Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-24 - Rules Pertaining to Home Equity Conversion Mortgages
Section 0180-24-.05 - INFORMATION TO BE FURNISHED TO THE COMMISSIONER

Universal Citation: TN Comp Rules and Regs 0180-24-.05

Current through April 3, 2024

(1) By letter, all authorized lenders shall provide the following information to the commissioner for dissemination to all counselors who provide counseling to prospective reverse mortgage borrowers:

(a) The borrower's rights, obligations, and remedies with respect to the borrower's temporary absence from the home, late payments by the lender, and payment default by the lender;

(b) Conditions or events that require the borrower to repay the loan obligations;

(c) The right of the borrower to mortgage less than the full value of the home, if permitted by the reverse mortgage loan contract;

(d) The projected total annual percentage rate applicable under various loan terms and appreciation rates and interest rates applicable at sample ages of borrowers;

(e) Standard closing costs;

(f) All service fees to be charged during the term of the loan;

(g) A statement explaining the unenforceability of loans not in compliance with the Act;

(h) A statement explaining that borrowers may be required to pay certain taxes, premiums and assessments;

(i) A statement disclosing all fees to be imposed under the reverse mortgage loan contract;

(j) A statement explaining how the outstanding loan balance is to be calculated;

(k) A statement explaining that prepayment is permitted without penalty;

(l) A statement disclosing the amount owned by borrower when loan is due;

(m) A statement designating the lender's employee or agent designated to answer borrower's inquiries and the telephone number at which the borrower may contact such employee or agent;

(n) A statement explaining the rights of the parties if lender defaults; and

(o) A statement listing the acts prohibited under T.C.A. § 47-30-115.

Authority: Section 1: T.C.A. §§ 47-30-109, 47-30-115 and 47-30-116.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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