North Carolina General Statutes 53-264. Disclosures of loan terms
(a) On forms prescribed by the Commissioner, all authorized lenders shall provide all of the following information to the Commissioner for dissemination to all counselors who provide counseling to prospective reverse mortgage borrowers:
(1) 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.
Terms Used In North Carolina General Statutes 53-264
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2) Conditions or events that require the borrower to repay the loan obligation.
(3) The right of the borrower to mortgage less than the full value of the home, if permitted by the reverse mortgage loan contract.
(4) The projected total annual percentage rate applicable under various loan terms and appreciation rates and interest rates applicable at sample ages of borrowers.
(5) Standard closing costs.
(6) All service fees to be charged during the term of the loan.
(7) Other information required by the Commissioner.
(8) Information relating to contracts for shared appreciation or shared value, as required by N.C. Gen. Stat. § 53-270.1
(b) Within 10 business days after application is made by a borrower, but not less than 20 business days before closing of the loan, lenders shall provide applicants with the same information required in subsection (a) of this section, shall inform applicants that reverse mortgage counseling is required before the loan can be closed, and shall provide the names and addresses of counselors listed with the Commissioner’s office. (1991, c. 546, s. 1; 1995, c. 115, s. 1; 1998-116, s. 4.)