Missouri Laws 443.906 – Reverse mortgage may be made regardless of certain other transactions
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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;
Terms Used In Missouri Laws 443.906
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Usury: Charging an illegally high interest rate on a loan. Source: OCC
(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.