Reverse Mortgage Transaction Law and Legal Definition
The term “reverse mortgage transaction” means a non-recourse transaction in which a mortgage, deed of trust, or equivalent consensual security interest is created against the consumer's principal dwelling--
(1) securing one or more advances; and
(2) with respect to which the payment of any principal, interest, and shared appreciation or equity is due and payable (other than in the case of default) only after--
(A) the transfer of the dwelling;
(B) the consumer ceases to occupy the dwelling as a principal dwelling; or
(C) the death of the consumer. 15 USCS § 1602
