(765 ILCS 945/10)
Sec. 10. Reverse mortgages.
(a) Reverse mortgage loans shall be subject to all of the following provisions:
(1) Payment, in whole or in part, shall be |
| permitted without penalty at any time during the term of the mortgage.
|
|
(2) A reverse mortgage may provide for an interest
|
| rate that is fixed or adjustable and may provide for interest that is contingent on appreciation in the value of the property.
|
|
(3) If a reverse mortgage provides for periodic
|
| advances to a borrower, the advances may not be reduced in amount or number based on any adjustment in the interest rate.
|
|
(4) A reverse mortgage may be subject to any
|
| additional terms and conditions imposed by a lender that are required under the provisions of the federal Housing and Community Development Act of 1987 to enable the lender to obtain federal government insurance on the mortgage if a loan is to be insured under that Act.
|
|
(b) The repayment obligation under a reverse mortgage is subject to all of the following:
(1) Temporary absences from the home not exceeding
|
| 60 consecutive days shall not cause the mortgage to become due and payable.
|
|
(2) Temporary absences from the home exceeding 60
|
| days, but not exceeding one year, shall not cause the mortgage to become due and payable, provided that the borrower has taken action that secures the home in a manner satisfactory to the lender.
|
|
(c) A reverse mortgage shall become due and payable upon the occurrence of any of the following events, unless the maturity date has been deferred under the Federal Housing Administration's Home Equity Conversion Mortgage Program:
(1) The property securing the loan is sold.
(2) All borrowers cease to occupy the home as a
|
|
(3) A fixed maturity date agreed to by the lender
|
| and the borrower is reached.
|
|
(4) Default by the borrower in the performance of
|
| its obligations under the loan agreement.
|
|
(5) The death of the borrower or, for homestead
|
| properties in joint tenancy, the death of the last surviving joint tenant who had an interest in the property at the time the loan was initiated.
|
|
(Source: P.A. 99-331, eff. 1-1-16 .)
|