Utah HB 94 to Lower Age for Proprietary Reverse Mortgage Borrowers

Recently, Utah House Bill 94 was passed and will require HECM borrowers to be at least 62 years old and proprietary reverse mortgage borrowers to be at least 55 years old (under current UT law all reverse mortgage borrowers must be 62).  Further, it will change the 7-day cooling off period (where the lender may not require the prospective borrower to close or otherwise proceed with the reverse mortgage) to a 5-day cooling off period and provide clarification regarding when HECM borrowers must receive counseling. Finally, it clarifies that if the borrower is deceased, the servicer is not required to send a notice of default and wait 30 days to allow the borrower to cure the default before initiating a foreclosure action.

The bill did not specify an effective date and therefore the bill will become effective 60 days following the adjournment date, which will be May 3, 2023.