Colorado passed a bill amending the due and payable requirements for reverse mortgage loans with respect to a natural disaster or force majeure. Under the bill, a temporary absence from the home due to a natural disaster or other force majeure that renders the home temporarily uninhabitable does not cause a reverse mortgage to become due and payable if certain conditions are met. In addition, the bill requires lenders to disclose to the borrower of a reverse mortgage loan that a temporary absence from the home due to a natural disaster or other force majeure that renders the home temporarily uninhabitable does not cause the reverse mortgage to become due and payable if certain conditions are met. “Force majeure” means fire, explosion, action of the elements, unusually severe weather, an Act of God, an Act of War, or any other cause that is beyond the control of the borrower and that could not have been prevented by the borrower while exercising reasonable diligence. The bill went into effect June 7, 2023.
Click to view the Colorado House Bil 1266: https://www.tenaco.com/wp-content/uploads/2023/07/CO-HB-1266-06-07-23.pdf
