Under current law, the borrower in a reverse mortgage transaction
is relieved of the obligation to occupy the subject property as a principal residence if the borrower is temporarily absent for up to 60 days or, if the property is adequately secured, for up to one year. The bill adds a third exception to the principal-residence requirement to cover situations in which a natural disaster or other serious incident beyond the borrower's control renders the property uninhabitable and the borrower is engaged in repairing the home with the intent of reoccupying the home as a principal residence, offering the home for sale, or selling the home. The maximum time allowable for a temporary absence under these circumstances is 5 years.
