Montana Code 90-6-502. Purpose
90-6-502. Purpose. Many elderly citizens in Montana own their own homes and have little or no remaining mortgage debt. Many of these home owners are persons of lower income who would benefit from an additional income source from the use of the equity in their homes. The legislature finds that reverse annuity mortgage loans would enable elderly home owners to provide more substantially for their own in-home support and specialized care. The purpose of this part is to:
Terms Used In Montana Code 90-6-502
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means a mortgage as defined in 90-6-103. See Montana Code 90-6-503
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Reverse annuity mortgage loan: means a loan in which loan proceeds are advanced to the mortgagor to provide a monthly tax-free cash payment for 10 years. See Montana Code 90-6-503
(1)establish a reverse annuity mortgage loan program within the board of housing;
(2)authorize the board to make reverse annuity mortgage loans;
(3)counsel, assist, and protect elderly home owners who wish to obtain a reverse annuity mortgage loan; and
(4)administer a reverse annuity mortgage loan program that does not jeopardize the mortgagor‘s eligibility for medicaid and other means-tested programs.