A limit on the consumer's liability to a certain percentage of the projected value of the home. For example, the following are limitations on the consumer's liability that must be included in the projected total cost of credit: These limits and agreements protect a portion of the equity in the dwelling for the consumer or the consumer's estate. Creditors must include any limitation on the consumer's liability (such as a nonrecourse limit or an equity conservation agreement) in the projected total cost of credit. (However, see the definition of Valnin appendix K to the regulation to determine the effect certain disposition costs may have on the total annual loan cost rates.)ģ3(c)(4) Limitations on Consumer Liabilityġ. Disposition costs incurred in connection with the sale or transfer of the property subject to the reverse mortgage are not included in the costs to the consumer under this paragraph. For example, this includes the costs of an annuity that a creditor offers, arranges, assists the consumer in purchasing, or that the creditor is aware the consumer is purchasing as a part of the transaction.ģ. The amount paid by the consumer for the annuity is a cost to the consumer under this section, regardless of whether the annuity is purchased through the creditor or a third party, or whether the purchase is mandatory or voluntary. As part of the credit transaction, some creditors require or permit a consumer to purchase an annuity that immediately - or at some future time - supplements or replaces the creditor's payments. All costs and charges to the consumer that are incurred in a reverse mortgage transaction are included in the projected total cost of credit, and thus in the total annual loan cost rates, whether or not the cost or charge is a finance charge under § 1026.4.Ģ. Costs and charges to consumer - relation to finance charge. For example, some reverse mortgage programs specify that the final maturity date is the borrower's 150th birthday other programs include a shorter term but provide that the term is automatically extended for consecutive periods if none of the other maturity events has yet occurred. An obligation may state a definite maturity date or term of repayment and still meet the definition of a reverse-mortgage transaction if the maturity date or term of repayment used would not operate to cause maturity prior to the occurrence of any of the maturity events recognized in the regulation. Some state laws require legal obligations secured by a mortgage to specify a definite maturity date or term of repayment in the instrument. To meet the definition of a reverse mortgage transaction, a creditor cannot require any principal, interest, or shared appreciation or equity to be due and payable (other than in the case of default) until after the consumer's death, transfer of the dwelling, or the consumer ceases to occupy the dwelling as a principal dwelling. Default is not defined by the statute or regulation, but rather by the legal obligation between the parties and state or other law.Ģ. However, if these new files require more overhead, the OS must seek storage that is greater than average.1. For example, when a user creates new files and performs different operations (e.g., renaming, modifying and deletion), extremely small spaces are expected to hold new data files.
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