In this subtitle the following words have the meanings indicated. “Arranger of financing” means a person that: For a fee or other valuable consideration, whether received directly or indirectly, aids or assists a borrower in obtaining a reverse mortgage loan; and Is not named as the lender in the reverse mortgage loan agreement. “Borrower” means an individual who makes a loan application for or receives a reverse mortgage loan. “Counseling agency” means an entity approved by the U.S. Department of Housing and Urban Development to provide counseling regarding reverse mortgage loans. “Dwelling” has the meaning stated in § 11–501 of the Financial Institutions Article. “Lender” means a person who makes a reverse mortgage loan. “Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity. “Reverse mortgage loan” means a nonrecourse loan that: Is secured by the borrower’s principal dwelling; Provides the borrower with purchase money proceeds, a lump sum payment, periodic cash advances, a line of credit, or any combination of those payment plans based on the equity in or value of the borrower’s principal dwelling; and Requires no payment of principal or interest until the full loan becomes due and payable.

The provisions of this subtitle: Apply to a reverse mortgage loan secured by a borrower’s principal dwelling in the State; and Are in addition to any other applicable provisions of law. If a provision of this subtitle conflicts with any provision of this title, the provision of this subtitle applies.

This subtitle does not require a lender that offers to make a reverse mortgage loan to offer a reverse mortgage loan: With any one or more particular payment plans; or To a prospective borrower who holds title to a dwelling in other than fee simple interest.

Except as otherwise provided in this subtitle, a lender that offers or makes a reverse mortgage loan secured by a dwelling in the State shall conform to the requirements of 12 U.S.C. § 1715z–20, and any regulations and guidance adopted under 12 U.S.C. § 1715z–20, regardless of whether the reverse mortgage loan is insured under 12 U.S.C. § 1715z–20. Except as otherwise provided in this subtitle, an arranger of financing that aids or assists, or offers to aid or assist, a borrower in obtaining a reverse mortgage loan secured by a dwelling in the State shall conform to the requirements of 12 U.S.C. § 1715z–20, and any regulations and guidance adopted under 12 U.S.C. § 1715z–20, regardless of whether the reverse mortgage loan is insured under 12 U.S.C. § 1715z–20.

A reverse mortgage loan that is not insured under 12 U.S.C. § 1715z–20 is not subject to the provisions in 12 U.S.C. § 1715z–20, or in any regulations or guidance adopted under 12 U.S.C. § 1715z–20, that: Limit origination fees to $6,000 as adjusted under 12 U.S.C. § 1715z–20(r); Impose maximum claim amounts or other loan limit restrictions; or Require government insurance for the loan. A lender or an arranger of financing is not subject to the federal regulatory approval requirements of 24 C.F.R., Part 202 when making or arranging a reverse mortgage loan that is not insured under 12 U.S.C. § 1715z–20.

Except as provided in paragraph (2) of this subsection, a lender or an arranger of financing may not require a borrower to purchase an annuity, a long–term care policy, or other financial or insurance product as a condition to obtaining a reverse mortgage loan. A lender or an arranger of financing may require a borrower to purchase title insurance, hazard, flood, or other peril insurance, and any other financial or insurance product that is required for reverse mortgage loans insured under 12 U.S.C. § 1715z–20. A lender or an arranger of financing may not refer a borrower to any person for the purchase of an annuity or any other financial or insurance product before the later of: The closing of the reverse mortgage loan; or The expiration of the borrower’s right to rescind the reverse mortgage loan agreement. This section does not prohibit a lender or an arranger of financing from offering to a borrower, or referring a borrower to a person for the purchase of: Title insurance; Hazard, flood, or other peril insurance; or Other products that are customary under a reverse mortgage loan.

On receiving an application for a reverse mortgage loan, a lender or an arranger of financing shall provide a prospective borrower with a written checklist, written in 12 point type or larger, advising the borrower to discuss the following issues with a counseling agency counselor: How unexpected medical or other events that cause the borrower to move out of the borrower’s home earlier than anticipated will impact the total annual cost of the reverse mortgage loan; The extent to which the borrower’s financial needs would be better met by options other than a reverse mortgage loan, including less costly home equity lines of credit, property tax deferral programs, or governmental aid programs; Whether the borrower intends to use the proceeds of the reverse mortgage loan to purchase an annuity or other financial or insurance product and the consequences of doing so; The effect of repayment of the reverse mortgage loan on other residents of the home securing the reverse mortgage loan after all borrowers have died or permanently left the home; The borrower’s ability to finance routine or catastrophic home repairs, especially if maintenance is a factor that may determine when the reverse mortgage loan becomes payable; The impact that the reverse mortgage loan may have on the borrower’s tax obligations and eligibility for government assistance programs, and the effect that losing equity in the home securing the reverse mortgage loan will have on the borrower’s estate and heirs; and The ability of the borrower to finance alternative living accommodations, such as assisted living or long–term care, after the borrower’s equity is depleted. If an individual obtains counseling on reverse mortgage loans from a counseling agency before applying for a reverse mortgage loan, the counseling agency shall provide the individual with the written checklist required under subsection (a) of this section.

Except as otherwise provided in this section: A lender or arranger of financing for a reverse mortgage loan insured under 12 U.S.C. § 1715z–20 that violates this subtitle is subject to the penalties provided in 12 U.S.C. § 1715z–20, and in any regulations and guidance adopted under 12 U.S.C. § 1715z–20; and A lender or arranger of financing for a reverse mortgage loan not insured under 12 U.S.C. § 1715z–20 that violates this subtitle: Engages in an unfair or deceptive trade practice within the meaning of Title 13 of this article; and Is subject to the enforcement and penalty provisions contained in Title 13 of this article, except § 13–411. A violation of this subtitle does not constitute a violation of any other subtitle of this title.