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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC1648]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                       Part B--Credit Transactions
 
Sec. 1648. Reverse mortgages


(a) In general

    In addition to the disclosures required under this subchapter, for 
each reverse mortgage, the creditor shall, not less than 3 days prior to 
consummation of the transaction, disclose to the consumer in conspicuous 
type a good faith estimate of the projected total cost of the mortgage 
to the consumer expressed as a table of annual interest rates. Each 
annual interest rate shall be based on a projected total future credit 
extension balance under a projected appreciation rate for the dwelling 
and a term for the mortgage. The disclosure shall include--
        (1) statements of the annual interest rates for not less than 3 
    projected appreciation rates and not less than 3 credit transaction 
    periods, as determined by the Board, including--
            (A) a short-term reverse mortgage;
            (B) a term equaling the actuarial life expectancy of the 
        consumer; and
            (C) such longer term as the Board deems appropriate; and

        (2) a statement that the consumer is not obligated to complete 
    the reverse mortgage transaction merely because the consumer has 
    received the disclosure required under this section or has signed an 
    application for the reverse mortgage.

(b) Projected total cost

    In determining the projected total cost of the mortgage to be 
disclosed to the consumer under subsection (a) of this section, the 
creditor shall take into account--
        (1) any shared appreciation or equity that the lender will, by 
    contract, be entitled to receive;
        (2) all costs and charges to the consumer, including the costs 
    of any associated annuity that the consumer elects or is required to 
    purchase as part of the reverse mortgage transaction;
        (3) all payments to and for the benefit of the consumer, 
    including, in the case in which an associated annuity is purchased 
    (whether or not required by the lender as a condition of making the 
    reverse mortgage), the annuity payments received by the consumer and 
    financed from the proceeds of the loan, instead of the proceeds used 
    to finance the annuity; and
        (4) any limitation on the liability of the consumer under 
    reverse mortgage transactions (such as nonrecourse limits and equity 
    conservation agreements).

(Pub. L. 90-321, title I, Sec. 138, as added Pub. L. 103-325, title I, 
Sec. 154(b), Sept. 23, 1994, 108 Stat. 2196.)