Are reverse mortgages covered by the National Credit Code?

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Yes.  Reverse mortgages are covered under the National Credit Code (NCC) as they were by the Uniform Consumer Credit Code (UCCC).  Provisions of the NCC relating to credit contracts apply to reverse mortgages.

Keep an eye out for phase 2 of the credit reforms which will introduce a separate definition for reverse mortgage contracts and imposes additional responsible lending and disclosure requirements if assisting clients with or providing reverse mortgages.

Author: Kathryn Wardrobe

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