HB 17-1026

House Bill 17-1026, which has been signed into law, addresses situations where a natural disaster or serious incident makes a home uninhabitable for someone with a reverse mortgage. Currently, if such an event occurs and the homeowner can't live in their house, they might still be required to meet certain conditions of their loan. This bill would allow those homeowners to avoid repayment on their reverse mortgage if their home becomes uninhabitable due to circumstances beyond their control, like a wildfire or flood. The law affects homeowners who have reverse mortgages and are impacted by natural disasters or other serious incidents. Since the bill has been signed, it is now active and provides relief for affected borrowers.

Official Summary

Wildfire Matters Review Committee. Under current law, the borrower in a reverse mortgage transaction is relieved of the obligation to occupy the subject property as a principal residence if the borrower is temporarily absent for up to 60 days or, if the property is adequately secured, up to one year. The bill directs the wildfire matters review committee to examine, in 2017, the circumstances giving rise to the introduced version of House Bill 17-1026, including the necessity and desirability of adding a third exception to the principal-residence requirement to cover situations in which a natural disaster or other serious incident beyond the borrower's control renders the property uninhabitable.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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