(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:

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Terms Used In Tennessee Code 47-30-109

  • 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
  • Borrower: means a natural person who occupies and owns in fee simple individually, or with another borrower as tenants by the entireties or as joint tenants with right of survivorship, an interest in residential real property securing a reverse mortgage loan, and who borrows money under a reverse mortgage loan. See Tennessee Code 47-30-102
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 47-30-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Fannie Mae: means The Federal National Mortgage Association, a corporation organized and existing under the laws of the United States. See Tennessee Code 47-30-102
  • HUD: means the United States department of housing and urban development. See Tennessee Code 47-30-102
  • lender: means :
    (A) A bank, savings and loan association, savings bank, savings institution, or credit union chartered under the laws of the United States or of Tennessee. See Tennessee Code 47-30-102
  • 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.
  • Reverse mortgage: means a mortgage or deed of trust securing a home equity conversion loan or reverse mortgage loan. See Tennessee Code 47-30-102
  • Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
(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;
(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) Either the projected total annual percentage rate, as defined in § 47-30-102, or a table of projected “Total Annual Loan Cost Rates” calculated in accordance with § 226.33 of Regulation Z ( 12 C.F.R. § 226.33 ) of the Federal Truth in Lending Act, 15 USC § 1601 et seq. 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; and
(7) Other information required by the commissioner.
(b) Within ten (10) business days after application is made by a borrower, but not less than twenty (20) business days before closing of the loan, lenders shall provide applicants with the same information required in subsection (a), 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 HUD or Fannie Mae.
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