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Can you summarize MNST 47.58?
FINANCIAL CORPORATIONS > REVERSE MORTGAGE LOANS.
Short Summary
This legal document, found in the Minnesota Statutes under the section on Financial Corporations, governs reverse mortgage loans. It provides definitions for terms related to reverse mortgage loans, such as ‘reverse mortgage loan,’ ’lender,’ ‘borrower,’ and ‘outstanding loan balance.’ The document outlines the authorization for lenders to make investments in reverse mortgage loans and sets limitations on the total amount of investments. It also specifies the payment, repayment, and amount of reverse mortgage loans, including the events that trigger repayment. The document addresses interest rates, taxes, insurance, loan closing costs, counseling requirements, and the right of rescission. Failure to comply with certain requirements may result in penalties. Overall, this document establishes the regulations and guidelines for reverse mortgage loans in Minnesota.
Whom does it apply to?
Lenders, borrowers, and reverse mortgage loan servicers
What does it govern?
Reverse mortgage loans
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
A lender's failure to comply with the requirement of referring the prospective borrower to an independent housing counseling agency for reverse mortgage counseling results in a $1,000 civil penalty payable to the borrower.
Jurisdiction
Minnesota