§ 12-1201. Definitions.

   (a) In general. -- In this subtitle the following words have the meanings indicated.

(b) Arranger of financing. -- "Arranger of financing" means a person that:

   (1) For a fee or other valuable consideration, whether received directly or indirectly, aids or assists a borrower in obtaining a reverse mortgage loan; and

   (2) Is not named as the lender in the reverse mortgage loan agreement.

(c) Borrower. -- "Borrower" means an individual who makes a loan application for or receives a reverse mortgage loan.

(d) Counseling agency. -- "Counseling agency" means an entity approved by the U.S. Department of Housing and Urban Development to provide counseling regarding reverse mortgage loans.

(e) Dwelling. -- "Dwelling" has the meaning stated in § 11-501 of the Financial Institutions Article.

(f) Lender. -- "Lender" means a person who makes a reverse mortgage loan.

(g) Person. -- "Person" includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(h) Reverse mortgage loan. -- "Reverse mortgage loan" means a nonrecourse loan that:

   (1) Is secured by the borrower's principal dwelling;

   (2) Provides the borrower with purchase money proceeds, a lump sum payment, periodic cash advances, a line of credit, or any combination of those payment plans based on the equity in or value of the borrower's principal dwelling; and

   (3) Requires no payment of principal or interest until the full loan becomes due and payable.

HISTORY: 2010, chs. 622, 623; 2011, ch. 65.