1. (1) By letter, all authorized lenders shall provide the following information to the commissioner for dissemination to all counselors who provide counseling to prospective reverse mortgage borrowers:

   1. (a) The borrower’s rights, obligations, and remedies with respect to the borrower’s temporary absence from the home, late payments by the lender, and payment default by the lender;
   2. (b) Conditions or events that require the borrower to repay the loan obligations;
   3. (c) The right of the borrower to mortgage less than the full value of the home, if permitted by the reverse mortgage loan contract;
   4. (d) The projected total annual percentage rate applicable under various loan terms and appreciation rates and interest rates applicable at sample ages of borrowers;
   5. (e) Standard closing costs;
   6. (f) All service fees to be charged during the term of the loan;
   7. (g) A statement explaining the unenforceability of loans not in compliance with the Act;
   8. (h) A statement explaining that borrowers may be required to pay certain taxes, premiums and assessments;
   9. (i) A statement disclosing all fees to be imposed under the reverse mortgage loan contract;
   10. (j) A statement explaining how the outstanding loan balance is to be calculated;
   11. (k) A statement explaining that prepayment is permitted without penalty;
   12. (l) A statement disclosing the amount owned by borrower when loan is due;
   13. (m) A statement designating the lender’s employee or agent designated to answer borrower’s inquiries and the telephone number at which the borrower may contact such employee or agent;
   14. (n) A statement explaining the rights of the parties if lender defaults; and
   15. (o) A statement listing the acts prohibited under T.C.A. § 47-30-115.

Authority: Section 1: T.C.A. §§ 47-30-109, 47-30-115 and 47-30-116. Administrative History: Original rule filed January 31, 1994; effective May 31, 1994.