(1) As used in this section: (a) "Federally insured loan borrower" means a borrower described in Subsection 57-28-202(1) (a). (b) "Non-federally insured loan borrower" means a borrower described in Subsection 57-28-202(1)(b). (2) A prospective borrower shall meet with an independent housing counselor: (a) for a federally-insured loan borrower, before the Federal Housing Administration assigns a case number to the borrower's loan; and (b) for a non-federally insured loan borrower, before the prospective borrower signs a reverse mortgage application. (3) During the meeting described in Subsection (2): (a) the prospective borrower and the independent housing counselor shall discuss the financial impacts of a reverse mortgage, including: (i) options other than a reverse mortgage that are or may become available to the prospective borrower; (ii) other home equity conversion options that are or may become available to the prospective borrower, including sale-leaseback financing, a deferred payment loan, and a property tax deferral; and (iii) the financial implications, specific to the prospective borrower, of entering into a reverse mortgage; and (b) the independent housing counselor shall give the prospective borrower a written disclosure that states that a reverse mortgage may: (i) have tax consequences; (ii) affect the prospective borrower's eligibility for assistance under certain state and federal programs; and (iii) impact the prospective borrower's estate and heirs.
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