FL H0845

Creates new statute establishing requirements for reverse mortgage loans in Florida, limiting origination and making of these loans to licensed mortgage lenders and mortgage brokers.

Sets origination fee limits at 2 percent of maximum claim amount up to $200,000, plus 1 percent of amounts exceeding $200,000, with a maximum fee of $6,000.

Requires mortgage lenders to provide mortgagors with counseling from independent, HUD-approved agencies before loan closing, covering alternatives, financial implications, and tax consequences.

Prohibits lenders from requiring reverse mortgage applicants to purchase insurance, annuities, or other financial products as a condition of obtaining the loan, and requires firewalls between mortgage operations and other financial activities.

Establishes loan parameters including no prepayment penalties, no reduction of periodic advances due to interest rate changes, and loan due upon borrower death, property transfer, loss of owner-occupancy, or breach of mortgage obligation.