In the past, borrowers could search the Department of Housing and Urban Development’s Lender List for approved Home Equity Conversion Mortgage (HECM) lenders and brokers. But since the Federal Housing Administration made the shift to include non-FHA-approved third party originators to originate HECM loans, the list has cut all non-FHA approved brokers, even though they [...]

What will happen to the HECM program if the deficit sharks-dubbed “Super Committee” don’t meet the $1.5 trillion in cuts they are tasked with completing by November 23? Right now, it’s anybody’s guess, but some are saying the failure of the Super Committee to meet its cuts may not be such a bad thing. The [...]

In a letter published today by Federal Housing Administration Acting Commissioner Carol Galante, FHA stated that there are no restrictions on underwriting for tax and insurance for HECM loans and that FHA is working on changes to the HECM program that will make it more successful. “HUD does not prohibit the inclusion of additional financial [...]

HECM counseling funding will be cut off on October 1 with the onset of Fiscal Year 2012. Now, consumers are beginning to feel the effects of an unfunded mandate. For some consumers, it means waiting twice or three times as long for HECM counseling appointments. For others, it means the cost is going up—as early [...]

Over the past two years, the percentage of fixed rate HECMs has surged to the point where it far outweighs the proportion of adjustable rate loans, a recent chart created by the Department of Housing and Urban Development depicts. However, in 2011 to date, the percentage has showed a slight decrease. The increase to more [...]

Even though Texas’ Homestead law will continue to prevent the state from offering the HECM for Purchase program until at least 2013, some lenders are preparing to enter the market they believe will open up if the constitution is amended to allow the product. The state’s warm climate, low cost of living, and lack of income [...]