138.058(1)(b)4.

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4. Any other condition specified in 12 USC 1715z-20.

138.058

138.058 Reverse mortgage loans.

138.058(1)

(1) Definitions. In this section:

138.058(1)(b)1.

1. All the borrowers have died.

138.058(1)(b)2.

2. All the borrowers have sold the residence or conveyed title to the residence.

138.058(2)

(2) Reverse mortgages permitted. A qualified lender may enter into reverse mortgage loans.

138.058(3)

(3) Treatment of reverse mortgage loan proceeds by public benefit programs.

138.058(1)(a)

(a) “Qualified lender” means a lender approved by the federal department of housing and urban development to enter into a loan insured by the federal government under 12 USC 1715z-20.

138.058(1)(b)

(b) “Reverse mortgage loan” means a loan, or an agreement to lend, which is secured by a first mortgage on the borrower’s principal residence, is insured by the federal government under 12 USC 1715z-20 and requires repayment as specified in the loan agreement under any of the following conditions:

138.058(1)(b)3.

3. All the borrowers have moved permanently from the residence.

138.058(3)(a)

(a) Reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals.

138.058(3)(b)

(b) Undisbursed funds shall be treated as equity in a borrower’s residence and not as proceeds from a loan for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals.

138.058(3)(c)

(c) This subsection applies to any law relating to payments, allowances, benefits or services provided on a means-tested basis by this state, including supplemental security income, low-income energy assistance, property tax deferral, medical assistance and general assistance.