source:
  type: regulation
  id: reg-z-1026.33
  authority: 12 CFR §1026.33 — Requirements for reverse mortgages (Regulation Z)
  description: 12 CFR §1026.33 — Requirements for reverse mortgages.
  coverage_tier: operative
obligations:
- id: reg-z-1026.33-full
  canonical_id: reg-z-1026.33-full
  section: 12 CFR §1026.33 — Requirements for reverse mortgages
  type: do
  tags:
  - regulator-direct
  - tila
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1026.33 — Requirements for reverse mortgages
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.33
    snapshot_id: 0ca8be96ae280cda
    fetched_at: '2026-06-17T18:31:37Z'
    content_hash: sha256:55298cfe1f4da6637fcc5d2ab4c85bb4cba3339c86158185aeb4473e455487ba
    paragraph_quote: '§ 1026.33 Requirements for reverse mortgages. (a) Definition.
      For purposes of this subpart, reverse mortgage transaction means a nonrecourse
      consumer credit obligation in which: (1) A mortgage, deed of trust, or equivalent
      consensual security interest securing one or more advances is created in the
      consumer ''s principal dwelling ; and (2) 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 principal dwelling . (b) Content
      of disclosures. In addition to other disclosures required by this part, in a
      reverse mortgage transaction the creditor shall provide the following disclosures
      in a form substantially similar to the model form found in paragraph (d) of
      appendix K of this part: (1) Notice. A statement that the consumer is not obligated
      to complete the reverse mortgage transaction merely because the consumer has
      received the disclosures required by this section or has signed an application
      for a reverse mortgage loan. (2) Total annual loan cost rates. A good-faith
      projection of the total cost of the credit, determined in accordance with paragraph
      (c) of this section and expressed as a table of “total annual loan cost rates,”
      using that term, in accordance with appendix K of this part. (3) Itemization
      of pertinent information. An itemization of loan terms, charges, the age of
      the youngest borrower and the appraised property value. (4) Explanation of table.
      An explanation of the table of total annual loan cost rates as provided in the
      model form found in paragraph (d) of appendix K of this part. (c) Projected
      total cost of credit. The projected total cost of credit shall reflect the following
      factors, as applicable: (1) Costs to consumer. All costs and charges to the
      consumer , including the costs of any annuity the consumer purchases as part
      of the reverse mortgage transaction. (2) Payments to consumer. All advances
      to and for the benefit of the consumer , including annuity payments that the
      consumer will receive from an annuity that the consumer purchases as part of
      the reverse mortgage transaction. (3) Additional creditor compensation. Any
      shared appreciation or equity in the dwelling that the creditor is entitled
      by contract to receive. (4) Limitations on consumer liability. Any limitation
      on the consumer ''s liability (such as nonrecourse limits and equity conservation
      agreements). (5) Assumed annual appreciation rates. Each of the following assumed
      annual appreciation rates for the dwelling: (i) 0 percent. (ii) 4 percent. (iii)
      8 percent. (6) Assumed loan period. (i) Each of the following assumed loan periods,
      as provided in appendix L of this part: (A) Two years. (B) The actuarial life
      expectancy of the consumer to become obligated on the reverse mortgage transaction
      (as of that consumer ''s most recent birthday). In the case of multiple consumers,
      the period shall be the actuarial life expectancy of the youngest consumer (as
      of that consumer ''s most recent birthday). (C) The actuarial life expectancy
      specified by paragraph (c)(6)(i)(B) of this section, multiplied by a factor
      of 1.4 and rounded to the nearest full year. (ii) At the creditor''s option,
      the actuarial life expectancy specified by paragraph (c)(6)(i)(B) of this section,
      multiplied by a factor of .5 and rounded to the nearest full year.'
  judgment: false
