Utah Code 57-28-203. Disclosures to borrower

A lender shall give a prospective borrower or a borrower the following written disclosures:

(1) at the time the lender provides an application for a reverse mortgage to a prospective borrower:

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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.

(1)(a) a disclosure that explains any adjustable interest rate feature of the reverse mortgage, including:

(1)(a)(i) the circumstances under which the interest rate may increase;

(1)(a)(ii) any limitation on the amount that the interest rate may increase; and

(1)(a)(iii) the effect of an increase in the interest rate; and

(1)(b) a list of at least five independent housing counselors that includes each independent housing counselor’s name, address, and telephone number;

(2) at least 10 days before the day on which a reverse mortgage closes, a disclosure that describes:

(2)(a) that the prospective borrower’s liability under the reverse mortgage is limited;

(2)(b) the prospective borrower’s rights, obligations, and remedies that relate to:

(2)(b)(i) temporary absences, late payments, and payment default by the lender; and

(2)(b)(ii) each condition that requires satisfaction of the reverse mortgage; and

(2)(c) the projected total cost of the reverse mortgage to the prospective borrower, based on the projected total future loan balance;

(3) on an annual basis, on or before January 31 of each year, a statement that summarizes:

(3)(a) the total principal amount paid to the borrower under the reverse mortgage;

(3)(b) the total amount of deferred interest added to the principal; and

(3)(c) the outstanding loan balance at the end of the preceding year; and

(4) if applicable, at least 25 days before the day on which the lender adjusts the interest rate on a reverse mortgage, a disclosure that states:

(4)(a) the current index amount;

(4)(b) the publication date of the index; and

(4)(c) the new interest rate.