A5389

Exempts reverse mortgage transactions from requirement of equal payment amounts and periods for secondary mortgage loans.

This bill modifies existing law to exempt reverse mortgage transactions from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Current law mandates that secondary mortgages be paid in installments that are substantially the same length of time and substantially equal in payment amount. This change allows flexibility in payment schedules for reverse mortgages, potentially accommodating borrowers with intermittent income.