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Statutes Text

Article - Commercial Law




§12–1206.

    (a)    (1)    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.

        (2)    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.

    (b)    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:

        (1)    The closing of the reverse mortgage loan; or

        (2)    The expiration of the borrower’s right to rescind the reverse mortgage loan agreement.

    (c)    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:

        (1)    Title insurance;

        (2)    Hazard, flood, or other peril insurance; or

        (3)    Other products that are customary under a reverse mortgage loan.



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