South Carolina Code 29-4-40. Reverse mortgage loans authorized without regard to certain provisions for other types of mortgage transactions
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Reverse mortgage loans may be made or acquired without regard to the following provisions for other types of mortgage transactions:
(1) limitations on the purpose and use of future advances or any other mortgage proceeds;
Terms Used In South Carolina Code 29-4-40
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Usury: Charging an illegally high interest rate on a loan. Source: OCC
(2) limitations on future advances to a term of years, or limitations on the term of credit line advances;
(3) limitations on the term during which future advances take priority over intervening advances;
(4) requirements that a maximum mortgage amount be stated in the mortgage;
(5) limitations on loan-to-value ratios;
(6) prohibitions on balloon payments;
(7) prohibitions on compounded interest and interest on interest;
(8) interest rate limits under the usury statutes; and
(9) requirements that a percentage of the loan proceeds must be advanced prior to loan assignment.