Section 49.1. Definitions

Applicant—A person who submits an application for a reverse mortgage loan.

CDCA—The Consumer Discount Company Act (7 P. S. § § 6201—6219).

Disbursements—Disbursements made by a licensee or assignee at or after the closing of a mortgage loan, including advances made on a reverse mortgage line of credit, regularly scheduled payments under a reverse mortgage loan and advances used to pay property charges.

FHA—The Federal Housing Administration.

HUD—The United States Department of Housing and Urban Development.

Hazard insurance—Insurance that covers property damage caused by fire, wind, storms and other similar risks.

Insured reverse mortgage loan—A reverse mortgage loan insured by the Federal government or agency or instrumentality thereof.

Licensee—A licensee under the MLA or CDCA or partially-exempt entity under the MLA.

MLA—The Mortgage Licensing Act (7 Pa.C.S. Chapter 61).

Maturity of a reverse mortgage loan—The date on which full repayment of the reverse mortgage loan is due.

Mortgage loan—A mortgage loan as defined in section 6102 of the MLA (relating to definitions) or a loan involving a mortgage made by a licensee under the CDCA, or both, as the context may require.

Mortgage originator—A mortgage originator as defined in section 6102 of the MLA.

Net worth—Assets less liabilities and assets unacceptable to HUD for purposes of complying with 24 CFR 202.5(n) or 202.8(b)(1) (relating to general approval standards; and loan correspondent lenders and mortgagees), as applicable.

Person—A person as defined in section 6102 of the MLA and section 2 of the CDCA (7 P. S. § 6202), as applicable.

Property charge set aside account—Funds set aside by the borrower to pay for property charges.

Property charges—Property taxes, hazard insurance and other charges required by the lender to be paid by the borrower.

Property taxes—The taxes assessed, or a reasonable estimate of the taxes to be assessed, on the property being mortgaged based upon the assessed value of the property and any improvements thereon.

Proprietary reverse mortgage lender—A licensee which makes proprietary reverse mortgage loans.

Proprietary reverse mortgage loan—A reverse mortgage loan that is not an insured reverse mortgage loan or single-purpose reverse mortgage loan.

Reverse mortgage loan—A mortgage loan that is a reverse mortgage transaction as defined in 12 CFR 226.33(a) (relating to requirements for reverse mortgages).

Service or servicing—Remitting payments to borrowers, or collecting or remitting payments for another of principal, interest, taxes, insurance and any other payments pursuant to a mortgage loan.

Single-purpose reverse mortgage loans—Reverse mortgage loans which are made by state or local governments or nonprofit organizations where the loan proceeds are to be used for a specified purpose.

Tenure reverse mortgage loan—A reverse mortgage loan where advances are made to the borrower for a period of time until the maturity of the reverse mortgage loan.

Term reverse mortgage loan—A reverse mortgage loan where advances are made to the borrower for a specified period of time.