1. (1) As used in this section:

   1. (a) "Federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(a).
   2. (b) "Non-federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(b).

2. (2) A prospective borrower shall meet with an independent housing counselor:

   1. (a) for a federally-insured loan borrower, before the Federal Housing Administration assigns a case number to the borrower's loan; and
   2. (b) for a non-federally insured loan borrower, before the prospective borrower signs a reverse mortgage application.

3. (3) During the meeting described in Subsection (2):

   1. (a) the prospective borrower and the independent housing counselor shall discuss the financial impacts of a reverse mortgage, including:

      1. (i) options other than a reverse mortgage that are or may become available to the prospective borrower;
      2. (ii) other home equity conversion options that are or may become available to the prospective borrower, including sale-leaseback financing, a deferred payment loan, and a property tax deferral; and
      3. (iii) the financial implications, specific to the prospective borrower, of entering into a reverse mortgage; and

   2. (b) the independent housing counselor shall give the prospective borrower a written disclosure that states that a reverse mortgage may:

      1. (i) have tax consequences;
      2. (ii) affect the prospective borrower's eligibility for assistance under certain state and federal programs; and
      3. (iii) impact the prospective borrower's estate and heirs.

Amended by Chapter 385, 2023 General Session