Enrolled Bill Summary
Legislative Session: 79(R)Senate Joint Resolution 7 proposes an amendment to the state constitution to provide additional methods by which a homeowner who obtains a reverse mortgage can draw line-of-credit advances from the loan. The current provision includes authorized advances of set amounts at regular intervals or advances at regular intervals at a reduced amount if requested by the borrower. The proposed amendment revises those two methods to provide that the initial advance may be made at any time and future advances at regular intervals, and authorizes two additional methods: the first allows an initial advance at any time with future advances at times and in amounts requested by the borrower until the established credit limit is reached, and the second allows an initial advance at any time, future advances at times and in amounts as requested until the established credit limit is reached, and subsequent advances at times and in amounts as requested by the borrower to the extent that the outstanding balance is repaid.
Senate Joint Resolution 21 also requires a reverse mortgage to provide that the borrower not use a credit card, debit card, preprinted solicitation check, or similar device to obtain an advance, and prohibits a reverse mortgage lender from collecting a transaction fee from the borrower solely for a debit or advance or from unilaterally amending the loan agreement.