(a) If a reverse mortgage loan contract allows for a change in the payments or payment options, the lender may charge a reasonable fee when payments are recalculated.
(b) The outstanding loan balance shall be calculated by adding the current totals of items described in subdivisions (1) through (4) below, and subtracting the current totals of all reverse mortgage loan payments made by the borrower to the lender:
(1) The sum of all disbursements made by the lender to the borrower, or to another party on the borrower's behalf.
(2) All taxes, assessments, insurance premiums, and other similar charges paid to date by the lender under G.S. 53‑261 and not reimbursed by the borrower within 60 days of the date payment was made by the lender.
(3) All actual closing costs the borrower has deferred, if a deferral provision is contained in the loan agreement.
(4) The total accrued interest to date.
(c) Prepayment of the reverse mortgage loan, in whole or part, shall be permitted without penalty at any time during the term of the loan. (1991, c. 546, s. 1; 1995, c. 115, s. 1.)