CO HB1026

Adds a third exception to reverse mortgage principal-residence requirements to cover situations where a natural disaster or force majeure renders the property uninhabitable, allowing up to 5 years of temporary absence.

Existing law already permits borrowers to be temporarily absent for up to 60 days or up to one year if the property is adequately secured; this bill extends protections for uninhabitable properties caused by events beyond the borrower's control.

Directs the Wildfire Matters Review Committee to examine in 2017 whether legislation suspending reverse mortgage repayment obligations is necessary when a natural disaster or force majeure makes a primary residence uninhabitable.

Requires the committee's examination to include analysis of applicable federal laws and regulations that may preempt state action and consideration of alternative policy approaches.

The committee's study requirement repeals effective September 1, 2018.