South Carolina Code 29-4-60. Independent information and counseling services
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(A) No lender authorized by this chapter to make reverse mortgages may accept an application for a reverse mortgage until the lender has obtained from the South Carolina State Housing Finance and Development Authority the content and format of a statement regarding the advisability and availability of independent information and counseling services on reverse mortgages that must be provided by the lender to the borrower pursuant to subsection (B).
(B) No reverse mortgage commitment may be made by a lender unless the loan applicant attests in writing that the applicant received from the lender at the time of initial inquiry the statement provided for in subsection (A).
Terms Used In South Carolina Code 29-4-60
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- reverse mortgage: means a nonrecourse loan secured by real property which:
(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) requires no payment of principal or interest until the entire loan becomes due and payable; and
(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 of Title 37. See South Carolina Code 29-4-20
(C) The Housing Finance and Development Authority shall:
(1) develop and make available to lenders the content and format of the statement described in subsection (A);
(2) refer consumers to independent counseling services with expertise in reverse mortgages.
(D) The Department on Aging shall provide independent consumer information on reverse mortgages and their alternatives.