A reverse mortgage in Texas is an extension of credit:
•that is secured by a voluntary lien on homestead property created by a written agreement with the consent of each owner and each owner’s spouse;
•that is made to a person who is or whose spouse is 62 years or older;
•that is made without recourse for personal liability against each owner and the spouse of each owner;
•under which advances are provided to a borrower based on the equity in a borrower’s homestead;
•that does not permit the Bank to reduce the amount or number of advances because of an adjustment in the interest rate if periodic advances are to be made;
•that requires no payment of principal or interest until:
− all borrowers have died; or
− the homestead property securing the loan is sold or otherwise transferred; or
− all borrowers cease occupying the homestead property as a principal residence for a period of longer than 12 consecutive months without prior written approval of the Bank and the location of the homestead property owner is unknown to the Bank;
•that provides that if the Bank fails to make loan advances as required in the loan documents and if the Bank fails to cure the default as required in the loan documents, the Bank forfeits all principal and interest of the reverse mortgage; and
•that is not made unless the owner of the homestead attests in writing that the owner received counseling regarding the advisability and availability of reverse mortgages and other financial alternatives.