HB 23-1266 Summary

• Defines "force majeure" in Colorado reverse mortgage law to include fire, explosion, severe weather, acts of God or war, and other causes beyond a borrower's control that could not have been prevented through reasonable diligence.

• Allows borrowers to temporarily absent themselves from a reverse mortgaged home if the absence results from a natural disaster or force majeure rendering the home uninhabitable, without triggering the repayment requirement, subject to HUD regulations and policies.

• Requires four conditions for the repayment suspension: the borrower must be actively repairing or rebuilding with intent to reoccupy or sell the home, maintain communication with the lender, comply with all other mortgage terms, and ensure repairs do not reduce the lender's security.

• Mandates lenders disclose these repayment suspension requirements to borrowers in writing at closing.

• Applies to reverse mortgages for homes rendered uninhabitable by natural disasters or force majeure occurring on or after the bill's effective date.