Bill > SB534

This bill modifies Oregon law regarding reverse mortgages by establishing clearer regulations and protections for borrowers. The bill defines key terms like "clear and conspicuous" and "reverse mortgage," and requires lenders to provide comprehensive written disclosures to borrowers before entering into a reverse mortgage agreement. These disclosures must explain critical details such as potential loss of home equity, fees and costs associated with the mortgage, how the loan balance grows over time, the borrower's ongoing responsibilities for property taxes and maintenance, and tax implications. A significant new provision limits lenders to claiming only the percentage of property equity that corresponds to the original lump sum loan amount, effectively preventing lenders from claiming more equity than their initial investment. The bill applies to reverse mortgage contracts entered into on or after its effective date and is declared an emergency measure, meaning it takes effect immediately upon passage. The goal appears to be protecting homeowners from potentially predatory lending practices by ensuring transparency and restricting lenders' equity claims in reverse mortgage transactions.

Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB534