Reverse mortgage loans may be made or acquired without regard to the following provisions for other types of mortgage transactions:
- (1) Limitations on the purpose and use of future advances or any other mortgage proceeds;
- (2) Limitations on future advances to a term of years, or limitations on the term of credit line advances;
- (3) Limitations on the term during which future advances take priority over intervening advances;
- (4) Requirements that a maximum mortgage amount be stated in the mortgage;
- (5) Prohibitions on balloon payments;
- (6) Prohibitions on compound interest;
- (7) Interest rate limits under the usury statutes;
- (8) Requirements that a percentage of the loan proceeds must be advanced prior to loan assignment.
(L. 1995 H.B. 63, et al. § 3)