[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 17-14677 ________________________

D.C. Docket No. 1:17-cv-03105-TWT

THE ESTATE OF CALDWELL JONES, JR., EXECUTRIX VANESSA JONES, VANESSA JONES, Surviving Spouse in Her Individual Capacity and as guardian of Leah Grace Jones, LEAH GRACE JONES, Minor,

Plaintiffs - Appellants, versus LIVE WELL FINANCIAL, INC.,

Defendant - Appellee.

________________________

Appeal from the United States District Court for the Northern District of Georgia ________________________

(September 5, 2018) Case: 17-14677 Date Filed: 09/05/2018 Page: 2 of 11

Before WILSON and NEWSOM, Circuit Judges, and VINSON,∗ District Judge. NEWSOM, Circuit Judge:

This case arises out of the foreclosure of a home-equity conversion mortgage—commonly called a “reverse mortgage.” We are asked to interpret a federal statute, 12 U.S.C. § 1715z-20, which authorizes the Secretary of the Department of Housing and Urban Development to establish a mortgage-insurance program designed to encourage lenders to offer reverse mortgages and thereby alleviate some of the financial pressures faced by elderly homeowners. Id. § 1715z-20(a). The particular provision at issue here states that the HUD Secretary “may not insure” a reverse mortgage unless it defers repayment obligations until the borrowing “homeowner” either dies or sells the mortgaged property—and importantly, expressly defines the term “homeowner” to include the borrower’s spouse. Id. § 1715z-20(j).

The question before us is whether § 1715z-20(j) can be read to do more— specifically, to prevent foreclosure pursuant to a reverse-mortgage contract that, by its terms, permits the lender to demand repayment immediately following a borrower’s death, even if his or her non-borrowing spouse continues to live in the mortgaged property. We hold that it cannot be construed so broadly. Because the statute addresses and limits only the Secretary’s authority—specifying the types of ∗ Honorable C. Roger Vinson, United States District Judge for the Northern District of Florida, sitting by designation. 2 Case: 17-14677 Date Filed: 09/05/2018 Page: 3 of 11

mortgages that HUD “may not insure”—it does not alter or affect the rights that a lender independently possesses under a reverse-mortgage contract.

I

A reverse mortgage is a financial instrument designed to allow older homeowners to convert their home equity into liquid assets. Cf. Bennett v. Donovan, 703 F.3d 582, 584 (D.C. Cir. 2013). In the typical reverse-mortgage transaction, the borrower receives a loan—in either a lump sum, a series of periodic payments, or a line of credit—that is secured by a mortgage on his home. Id. at 584–85. Unlike a traditional mortgage loan, a reverse-mortgage loan generally needn’t be repaid until a specific “triggering” event occurs—usually, the borrower’s death or the sale of his home. Id. Upon the occurrence of that event, either (1) the estate will pay off the loan or (2) the lender will foreclose on the home to recover the money it lent.

Reverse mortgages are ordinarily “non-recourse” loans, meaning that even if a borrower or his estate fails to repay the loan when due and the sale of the home doesn’t cover the outstanding balance, the lender can’t go after any of the borrower’s (or his estate’s) other assets. Id. at 585. “This feature is, of course, favorable to borrowe