The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

Terms Used In Washington Code 31.04.505

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Life estate: A property interest limited in duration to the life of the individual holding the interest (life tenant).
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
(1) “FHA-approved reverse mortgage” means a “home equity conversion mortgage” or other reverse mortgage product guaranteed or insured by the federal department of housing and urban development.
(2) “Owner-occupied residence” is the borrower’s residence and includes a life estate property the legal title for which is held in the name of the borrower in a reverse mortgage transaction or in the name of a trust, provided the occupant of the property is the beneficiary of that trust.
(3) “Proprietary reverse mortgage loan” is any reverse mortgage loan product that is not a home equity conversion mortgage loan or other federally guaranteed or insured loan.
(4) “Reverse mortgage broker or lender” means a licensee under the Washington state consumer loan act, chapter 31.04 RCW, or a person exempt from licensing pursuant to federal law.
(5) “Reverse mortgage loan” means a nonrecourse consumer credit obligation in which:
(a) A mortgage, deed of trust, or equivalent consensual security interest securing one or more advances is created in the borrower’s dwelling;
(b) Any principal, interest, or shared appreciation or equity is due and payable, other than in the case of default, only after:
(i) The consumer dies;
(ii) The dwelling is transferred; or
(iii) The consumer ceases to occupy the dwelling as a dwelling; and
(c) The broker or lender is licensed under Washington state law or exempt from licensing under federal law.
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