Appendix L - Appendix L to Part 226—Assumed Loan Periods for Computations of Total Annual Loan Cost Rates

(a) Required tables. In calculating the total annual loan cost rates in accordance with appendix K of this part, creditors shall assume three loan periods, as determined by the following table.

(b) Loan periods. (1) Loan Period 1 is a two-year loan period.

(2) Loan Period 2 is the life expectancy in years of the youngest borrower to become obligated on the reverse mortgage loan, as shown in the U.S. Decennial Life Tables for 1979-1981 for females, rounded to the nearest whole year.

(3) Loan Period 3 is the life expectancy figure in Loan Period 3, multiplied by 1.4 and rounded to the nearest full year (life expectancy figures at .5 have been rounded up to 1).

(4) At the creditor's option, an additional period may be included, which is the life expectancy figure in Loan Period 2, multiplied by .5 and rounded to the nearest full year (life expectancy figures at .5 have been rounded up to 1).

Age of youngest borrower Loan period 1 (in years) [Optional loan period (in years)] Loan period 2 (life expectancy) (in years) Loan period 3 (in years) 622[11]2129 632[10]2028 642[10]1927 652[9]1825 662[9]1825 672[9]1724 682[8]1622 692[8]1622 702[8]1521 712[7]1420 722[7]1318 732[7]1318 742[6]1217 752[6]1217 762[6]1115 772[5]1014 782[5]1014 792[5]913 802[5]913 812[4]811 822[4]811 832[4]710 842[4]710 852[3]68 862[3]68 872[3]68 882[3]57 892[3]57 902[3]57 912[2]46 922[2]46 932[2]46 942[2]46 95 and over2[2]34
[60 FR 15476, Mar. 24, 1995]