§ 10701. Definitions
As used in this subchapter, the term “reverse mortgage loan” means a loan that:
(1) is a loan in which the committed principal amount is secured by a mortgage on residential property owned by the borrower;
(2) is due upon sale of the property securing the loan or upon the death of the last surviving borrower or upon the borrower terminating use of the real property as a principal residence or upon the borrower’s default;
(3) provides cash advances to the borrower based upon the equity or the value in the borrower’s owner-occupied principal residence; and
(4) requires no payment of principal or interest until the entire loan becomes due and payable. (Added 2009, No. 53, § 4; amended 2021, No. 105 (Adj. Sess.), § 283, eff. July 1, 2022; 2025, No. 142 (Adj. Sess.), § 30, eff. July 1, 2026.)