Deadline Nears to Submit Comments on FHA Reverse Mortgage Proposals

Reverse mortgage industry stakeholders have less than one month to submit comments regarding the Federal Housing Administration’s most recent proposals for the Home Equity Conversion Mortgage (HECM) program.

The comment due date is July 18, 2016, for anyone who wishes to submit a public response to the FHA’s proposed rule issued last month, which codifies recent HECM reforms that have been implemented in the past several years.

The rule proposes some new changes for the HECM program, including but not limited to, capping lifetime interest rate increases on all adjustable rate HECMs to 5%, as well as reducing the cap on annual interest rate increases on HECM ARMs from 2% to 1%.


Several industry members have already expressed their concern for some of the proposals and their potential impact on the reverse mortgage marketplace and the secondary market.

As of this writing, just four comments have been submitted on—but there is still more time to voice any and all concerns to HUD.

Anyone interested in submitting comments regarding the proposed rule may do so by mailing responses to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC, 20410-0500.

Electronic submissions are also acceptable through the Federal eRulemaking Portal at

HUD “strongly encourages” commenters to submit responses electronically, as this method not only allows commenters the maximum time to prepare and submit comments, but also ensures timely receipt by HUD.

To electronically submit a comment to FHA’s proposed rule, click here.

Written by Jason Oliva

Join the Conversation (7)

see all

This is a professional community. Please use discretion when posting a comment.

  • This is meant as a serious question. What, if any, will the response be to any comments that would be submitted? It seems that in the past few years laws, rules, and guildlines are implemented regardless of what we (LO’s and Brokers) think or say. And some happen out of the blue with little or no advanced warning. NRMLA came out with the guildline requiring 18 months seasoning to refi a current RM last fall. I think it was December 2014 when we were told about the new seasoning rule on funds from a HELOC or other refi needing to be 1 year. And what about the 7 day cooling off period that CA instituted at the beginning of 2015? That went through the state legislation and was a done deal by the time anyone even new it was coming up! I personally called my state Reps and was told and I quote “That Train has Left the Station”!! I would absolutely love to be in the conversations regarding any changes, and I am sure everyone else wold be too. But I do not think I am alone in feeling like our vote doesn’t count at this point. And with only 4 comments submitted so far it appears I am right in this thinking, unfortunately.

  • Been trying to buy a condo in a senior community for 6 months, but none of them want to apply for FHA approval, so can’t get reverse mortgage. FHA needs to lighten up on the rule.

  • My comment and resistance on the proposed cap rule is going to be made, all will be able to view it this week. The proposal where the cap is concerned will effect the secondary market, this could be the Straw that could break the Camels back for the reverse mortgage industry!

    John A. Smaldone

string(112) ""

Share your opinion

[wpli_login_link redirect=""]