Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 94 Second Substitute (2023GS)

Sponsor

Rep. Brooks, W.

Final action

Governor Signed 3/20/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends the age requirement for a reverse mortgage borrower;
• amends requirements for a prospective borrower to meet with an independent housing counselor;
• changes the requirement for a cooling off period from seven days to five days;
• provides that certain prerequisites for initiating foreclosure proceedings do not apply if the borrower is deceased;
• defines terms; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

REVERSE MORTGAGE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Walt Brooks
Senate Sponsor: 
Don L. Ipson
LONG TITLE
General Description:
This bill makes changes to reverse mortgage requirements.
Highlighted Provisions:
This bill:
▸ amends the age requirement for a reverse mortgage borrower;
▸ amends requirements for a prospective borrower to meet with an independent
housing counselor;
▸ changes the requirement for a cooling off period from seven days to five days;
▸ provides that certain prerequisites for initiating foreclosure proceedings do not
apply if the borrower is deceased;
▸ defines terms; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
57-28-202
, as enacted by Laws of Utah 2015, Chapter 290
57-28-204
, as enacted by Laws of Utah 2015, Chapter 290
57-28-207
, as enacted by Laws of Utah 2015, Chapter 290
57-28-304
, as last amended by Laws of Utah 2016, Chapter 305
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
57-28-202
 is amended to read:
57-28-202.
Borrower requirements.
A borrower shall:
(1) 
(a) for a home equity conversion mortgage insured by the Federal Housing
Administration under Title 1 of the National Housing Act, 12 U.S.C. Sec. 1715z-20, 
be 62
years [
of age
] 
old
 or older; and
(b) for proprietary loans not insured by the Federal Housing Administration, be 55
years old or older; and
(2) occupy the dwelling that secures the reverse mortgage as a principal residence.
Section 2. Section 
57-28-204
 is amended to read:
57-28-204.
Independent counseling.
(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)
 [
Before a prospective borrower signs a reverse mortgage application, the
] 
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.
[
(2)
] 
(3)
 During the meeting described in Subsection [
(1)
] 
(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.
Section 3. Section 
57-28-207
 is amended to read:
57-28-207.
Cooling off period -- Closing.
(1) After a prospective borrower accepts, in writing, a lender's written commitment to
make a reverse mortgage, the lender may not bind the prospective borrower to the reverse
mortgage earlier than [
seven
] 
five
 days after the day on which the prospective borrower gives
the written acceptance to the lender.
(2) During the [
seven-day
] 
five-day
 period described in Subsection (1), the lender may
not require the prospective borrower to close or otherwise proceed with the reverse mortgage.
(3) A prospective borrower may not waive the provisions of this section.
Section 4. Section 
57-28-304
 is amended to read:
57-28-304.
Foreclosure.
(1)
 [
Before 
] 
Except as provided in Subsection (2), before 
a person initiates foreclosure
proceedings on a reverse mortgage, the person shall:
[
(1)
] 
(a)
 send the borrower, by certified mail, return receipt requested, written notice
that states the grounds for default and foreclosure; and
[
(2)
] 
(b)
 provide the borrower at least 30 days after the day on which the person sends
the notice described in Subsection [
(1)
] 
(1)(a)
 to cure the borrower's default.
(2) This section does not apply if the borrower is deceased.