---
kind: "section"
citation: "15 U.S.C. § 1648"
title: "15"
title_heading: "Commerce and Trade"
number: "1648"
heading: "Reverse mortgages"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1648"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part B — Credit Transactions"
---

# §1648. Reverse mortgages

- (a) **In general—** In addition to the disclosures required under this subchapter, for each reverse mortgage, the [creditor](/usc/15/1602.md?p=g) shall, not less than 3 days prior to consummation of the transaction, disclose to the [consumer](/usc/15/1681a.md?p=c) in conspicuous type a good faith estimate of the projected total cost of the mortgage to the [consumer](/usc/15/1681a.md?p=c) expressed as a table of annual interest rates. Each annual interest rate shall be based on a projected total future [credit](/usc/15/1602.md?p=f) extension balance under a projected appreciation rate for the [dwelling](/usc/15/1602.md?p=w) and a term for the mortgage. The disclosure shall include—
  - (1) statements of the annual interest rates for not less than 3 projected appreciation rates and not less than 3 [credit](/usc/15/1602.md?p=f) transaction periods, as determined by the [Bureau](/usc/15/1602.md?p=b), including—
    - (A) a short-term reverse mortgage;
    - (B) a term equaling the actuarial life expectancy of the [consumer](/usc/15/1681a.md?p=c); and
    - (C) such longer term as the [Bureau](/usc/15/1602.md?p=b) deems appropriate; and
  - (2) a statement that the [consumer](/usc/15/1681a.md?p=c) is not obligated to complete the [reverse mortgage transaction](/usc/15/1602.md?p=cc) merely because the [consumer](/usc/15/1681a.md?p=c) has received the disclosure required under this section or has signed an application for the reverse mortgage.
- (b) **Projected total cost—** In determining the projected total cost of the mortgage to be disclosed to the [consumer](/usc/15/1681a.md?p=c) under [subsection (a)](#a), the [creditor](/usc/15/1602.md?p=g) shall take into [account](/usc/15/1681a.md?p=r-4)—
  - (1) any shared appreciation or equity that the lender will, by contract, be entitled to receive;
  - (2) all costs and charges to the [consumer](/usc/15/1681a.md?p=c), including the costs of any associated annuity that the [consumer](/usc/15/1681a.md?p=c) elects or is required to purchase as part of the [reverse mortgage transaction](/usc/15/1602.md?p=cc);
  - (3) all payments to and for the benefit of the [consumer](/usc/15/1681a.md?p=c), including, in the case in which an associated annuity is purchased (whether or not required by the lender as a condition of making the reverse mortgage), the annuity payments received by the [consumer](/usc/15/1681a.md?p=c) and financed from the proceeds of the loan, instead of the proceeds used to finance the annuity; and
  - (4) any limitation on the liability of the [consumer](/usc/15/1681a.md?p=c) under [reverse mortgage transactions](/usc/15/1602.md?p=cc) (such as nonrecourse limits and equity conservation [agreements](/usc/15/7a.md?p=2)).

## Source credit

(Pub. L. 90–321, title I, § 138, as added Pub. L. 103–325, title I, § 154(b), Sept. 23, 1994, 108 Stat. 2196; amended Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

## Notes

### Editorial Notes

### Amendments

2010—Subsec. (a)(1). Pub. L. 111–203 substituted “Bureau” for “Board” in two places.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.