California Civil Code

§ 1923.2

CIV § 1923.2 Effective Jan 1, 2015Div. 3 · Title 4 · Part 4 · Ch. 8

Statute text

A reverse mortgage loan shall comply with all of the following requirements:

(a)Prepayment, in whole or in part, shall be permitted without penalty at any time during the term of the reverse mortgage loan. For the purposes of this section, penalty does not include any fees, payments, or other charges that would have otherwise been due upon the reverse mortgage being due and payable.

(b)A reverse mortgage loan may provide for a fixed or adjustable interest rate or combination thereof, including compound interest, and may also provide for interest that is contingent on the value of the property upon execution of the loan or at maturity, or on changes in value between closing and maturity.

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Legislative history

Amended by Stats. 2014, Ch. 854, Sec. 2. (AB 1700) Effective January 1, 2015.