As used in this chapter "reverse mortgage" means a nonrecourse loan secured by real property which:

1. (1) provides cash advances to a borrower based on the equity or future appreciation in value in a borrower's owner-occupied principal residence;
2. (2) requires no payment of principal or interest until the entire loan becomes due and payable; and
3. (3) is made by a lender authorized to engage in business as a bank, savings institution, or credit union under the laws of the United States or of South Carolina, or a mortgage lender licensed pursuant to Chapter 22, Title 37.

HISTORY: 1994 Act No. 376, Section 1; 2009 Act No. 67, Section 4.I, eff January 1, 2010.

Effect of Amendment

The 2009 amendment, in item (1), added "or future appreciation in value"; and, in item (3), substituted "a mortgage lender licensed pursuant to Chapter 22, Title 37" for "authorized seller-servicers selling mortgage loans to the Federal National Mortgage Association or to the Federal Home Loan Mortgage Corporation,".