I am an HECM Counselor employed by Old Pueblo Community Foundation in Tucson, AZ. I can be reached for scheduling appointments at 520-301-5126 or email rtubac@aol.com. It is my understanding that clients must obtain and review material before counseling can be scheduled, but if potential clients are looking for a counselor, they can contact me and I will try to schedule a time.

What a disaster…I had people who were counseled in time, signed an application in time and yet could not get an FHA case number…why? simple, counseling done last evening could not be confirmed and certs received in time to issue a case number prior to FHA connection shutting down at 6pm pacific. Try explaining to borrowers why they now will not get the quotes they hoped for? This is why they should have gone on App and counseling date for Sept 30 and not FHA Case number assigned date…they should provide another 48 hr extension with issuance of case numbers to any client that had signed by Sept 30 and were also counseled…this was an absurd and shortsighted implementation of an important change in the program.

Mr. Smaldone,

Good to “hear your voice” and see your name in print again.

Get ready. We could only have a short breather before change occurs once more on the principal limit front. If the Conference Committee meets soon and a bill is enacted that requires a different percentage change to the principal limits than HUD just mandated, more change will be required. It is remotely possible that could happen before the end of the month.

What just happened could be an annual event depending on the home appreciation rates that OMB chooses to use in its budget calculations. It is interesting to read the recent GAO report on HUD in this regard.

The story is far too complicated to be presented here. Its roots are in HERA. Not only did HERA fail us by driving Fannie Mae to increase margins on HECMs to avoid lack of compliance under HERA Section 1109 but it also resulted in a significant and permanent budget change under Section 2118(b)(2). Despite the passage of 14 months after HERA was enacted, several issues related to HERA Section 2122 have yet to be implemented.

Marty Bell touched on one facet of the budget battle when he responded to the Consumer Reports article but there is much more to report. Sadly, like all good messengers, some are attacking HUD for its part in implementing what is expected from H.R. 3288, all due to HERA Section 2118(b)(2).

What the current situation shows is that not even HECMs are immune from quick and immense changes. Here in California not only are we facing federal changes but many of us expect to see the Governor sign AB 329 into law before the holidays.

Look forward to your involvement in the future.

John Smaldone wrote in response to James_E_Veale_CPA_MBTrnrnJames,rnrnI appreciate you writing to me. I do understand what you are saying. Arnfriend of mine in HUD could not tell me much other than expect more changesrnand be on the look out soon for another directive from HUD. Sounds like yournare right on target James. Thanks for missing me, I will start coming backrnin the picture my friend. You have a great eveningrnrnTake care,rnrnJohn