The reverse mortgage for purchase is available in Texas, a Department of Housing and Urban Development official confirmed to the National Reverse Mortgage Lenders Association on Thursday.
The loan goes live for borrowers just weeks following a vote among Texas citizens to amend the state’s constitution to allow for the Home Equity Conversion Mortgage for purchase—making it the last state to allow the loan.
HUD Director of Single Family Program Development Karin Hill notified NRMLA State and Local Committee Chair Scott Norman that there would not be a mortgagee letter or other formal notification giving lenders the go-ahead to begin offering the product.
“Hill, who directly manages the HECM program on a daily basis, stated in her email to Norman that ‘our policy has been to require lenders to ensure that their loan documents contain language required under the legislation as well as meeting HUD general requirements,” according to NRMLA. “I have informed other HUD offices and HOCs that Purchase transactions are now available in Texas.'”
There are still details pending, however, Norman told RMD, including an announcement from the title industry regarding coverage available for purchase-specific issues and coordination with the Texas Real Estate Commission.
Once those issues are resolved, lenders will begin taking applications, he said, noting the quick response from HUD.
“HUD deserves a great deal of credit for signing off on this so quick,” he said. “They have been great to work with.”
Written by Elizabeth EckerPrint Article