Arizona Laws 6-1702. Financial counseling; counselor requirements
A. Adequate counseling under this chapter must be provided by a counselor who is an independent third party.
Terms Used In Arizona Laws 6-1702
- Department: means the department of insurance and financial institutions. See Arizona Laws 6-101
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Reverse mortgage: means a nonrecourse consumer credit obligation to which all of the following apply:
(a) A mortgage, deed of trust or equivalent consensual security interest securing one or more advances is created in the borrower's principal dwelling. See Arizona Laws 6-1701
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. To qualify as an independent third party, the counselor may not be associated with or compensated, directly or indirectly, by a party involved in any of the following:
1. Originating or servicing the reverse mortgage.
2. Funding the loan underlying the reverse mortgage.
3. Selling annuities, investments, long-term care insurance or any other type of financial or insurance product.
C. Counseling services required pursuant to this chapter shall be provided by housing counseling agencies and by counselors who follow uniform counseling protocols approved by the United States department of housing and urban development.