(a) A reverse mortgage loan:

(1)

(A) Shall permit prepayment in whole or in part without penalty at any time during the term of the reverse mortgage loan.

(B) For the purposes of this subdivision (a)(1), "penalty" does not include any fees, payments, or other charges that would have otherwise been due upon the maturity of the reverse mortgage;

(2) May provide for a fixed or adjustable interest rate, or combination thereof, and compound interest;

(3) May provide for a rate of interest that is contingent upon the value of the property at the time of execution of the loan or at maturity, or upon changes in value between closing and maturity; and

(4) May include costs and fees that are customarily charged by the lender or the lender's designee, originator, or servicer, including costs and fees charged:

(1) Upon execution of the loan;

(2) On a periodic basis; or

(3) Upon maturity.

(b) If a reverse mortgage loan provides for periodic advances to a borrower, the advances shall not be reduced in amount or number based upon any adjustment in the interest rate.

(c) The lender shall prominently disclose in the loan agreement any interest rate or other fees to be charged during the period that commences on the date that the reverse mortgage loan becomes due and payable and that ends when repayment in full is made.

(d) The first page of any mortgage or deed of trust securing a reverse mortgage loan shall contain the following statement in 10-point boldface type: "This deed of trust secures a reverse mortgage loan."