W. Va. Code R. § 106-19-8

Current through Register Vol. XLI, No. 36, September 6, 2024

Section 106-19-8 - Maintenance of Real Property Securing the Reverse Mortgage Loan

8.1. Structural Integrity. -- Mortgagor(s) shall be required to maintain the structural integrity of the real property securing the reverse mortgage loan in the same condition as the property is in at the time of closing or after repairs have been made for which funds have been disbursed or set aside at closing for later disbursement. For purposes of this section, repairs necessary to maintain the structural integrity shall be limited to repairing structural problems threatening the continued viability of the structure as a residential unit and those matters which, without repair, will threaten to materially damage the property or its market value.

8.2. Lender Arrangement of Repair to Maintain Structural Integrity. -- If the mortgagor(s) fails to make a repair required to maintain the structural integrity of the real property in a timely manner, the lender may arrange for the repair and pay for it in the following ways:

8.2.a. by deducting necessary amounts from a reserve fund;

8.2.b. by withholding from one or more monthly payments otherwise due to the mortgagor(s) no more than 25% of each of the monthly payments; or

8.2.c. by adding the amount to the loan principal.

If a reserve fund has been established for repairs, then the lender must first deduct the repair costs from that fund before choosing whether to proceed according to the provisions of subdivision 8.2.b or 8.2.c of this rule. If a reserve fund has not been established, then the lender may choose whether to proceed according to the provisions of subdivision 8.2.b or 8.2.c of this rule, or a combination thereof.

8.3. Lender Must Notify Mortgagor of Repair. -- Prior to making or charging the mortgagor(s) for a repair necessary to maintain the structural integrity of the real property, the lender shall notify the mortgagor(s) of the problem and, unless a threat of imminent danger to life or property exists, provide the mortgagor(s) ninety days in which to make the repairs. If the repairs are not completed by the mortgagor(s) in a satisfactory manner prior to the end of the appropriate period, the lender may take those steps as it views reasonably necessary to maintain the structural integrity of the real property and charge the mortgagor(s) for all reasonable expenses. If an imminent danger to life or property exists, the lender may proceed to preserve the structural integrity of the real property on as little as forty-eight hours notice to the mortgagor(s).

8.4. Lender Right to Inspect on Notice. -- The lender shall have the right to inspect the real property securing the loan on seventy-two (72) hours notice to the mortgagor but not more often than is reasonably necessary to ensure the continued structural integrity of the real property.

W. Va. Code R. § 106-19-8