House Bill No. 56
Introduced By r. johnson
By Request of the Board of Housing
A Bill for an Act entitled: "An Act modifying the reverse annuity mortgage loan program to better serve the needs of elderly homeowners; granting greater flexibility to the board of housing in establishing age and property eligibility criteria; amending section 90-6-503, MCA; and providing an immediate effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 90-6-503, MCA, is amended to read:
"90-6-503. Definitions. As used in this part, unless the context requires otherwise, the following terms apply:
(1) "Mortgage" means a mortgage as defined in 90-6-103.
(2) "Mortgagee" means the holder of a mortgage or its assignee.
(3) "Mortgagor" means a person:
(a) who is of lower income as determined by the board. In its determination of lower income, the board shall take into consideration the criteria in 90-6-103(16).
68 years of age or older who is of at least the minimum age established by the board in program guidelines;
(c) who is the owner and occupant of a single-family dwelling
that is unencumbered by any prior mortgage, lien, or pledge;
(d) who has completed a reverse annuity mortgage counseling program approved by the board.
(4) "Reverse annuity mortgage loan" means a loan in which loan proceeds are advanced to the mortgagor to provide a monthly tax-free cash payment for 10 years.
(5) "Single-family dwelling" means a one- to four-family living unit
, excluding a condominium as defined in 70-23-102."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.