A5389

Exempts reverse mortgage transactions from equal payment requirements for secondary mortgage loans.

Exempts reverse mortgage transactions from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Currently, secondary mortgage loans must be paid in installments that are substantially the same length of time and substantially equal in payment amount. This bill removes that requirement for reverse mortgage transactions, allowing for variations in payment amounts and periods. The change applies to loans defined under 15 U.S.C. s.1602.