RCW 31.04.505Definitions.The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) 'FHA-approved reverse mortgage' means a 'home equity conversion mortgage' or other reverse mortgage product guaranteed or insured by the federal department of housing and urban development.(2) 'Owner-occupied residence' is the borrower's residence and includes a life estate property the legal title for which is held in the name of the borrower in a reverse mortgage transaction or in the name of a trust, provided the occupant of the property is the beneficiary of that trust.(3) 'Proprietary reverse mortgage loan' is any reverse mortgage loan product that is not a home equity conversion mortgage loan or other federally guaranteed or insured loan.(4) 'Reverse mortgage broker or lender' means a licensee under the Washington state consumer loan act, chapter 31.04 RCW, or a person exempt from licensing pursuant to federal law.(5) 'Reverse mortgage loan' means a nonrecourse consumer credit obligation in which:(a) A mortgage, deed of trust, or equivalent consensual security interest securing one or more advances is created in the borrower's dwelling;(b) ans a nonrecourse consumer credit obligation in which:(a) A mortgage, deed of trust, or equivalent consensual security interest securing one or more advances is created in the borrower's dwelling;(b) Any principal, interest, or shared appreciation or equity is due and payable, other than in the case of default, only after:(i) The consumer dies;(ii) The dwelling is transferred; or(iii) The consumer ceases to occupy the dwelling as a dwelling; and(c) The broker or lender is licensed under Washington state law or exempt from licensing under federal law.[ 2009 c 149 s 1.]
Washington Legal Code