HUD Eliminates Reverse Mortgage HECM Advisor Program

imageToday FHA Commissioner Brian Montgomery conducted a telephone briefing on the FHA Modernization legislation and he announced that HUD will be eliminating the HECM Advisor program.  According to NRMLA, HUD will be issuing a Mortgagee Letter within the next 30 days because the new law requires that, “All parties that participate in the origination of a mortgage to be insured under this section shall be approved by the Secretary”.  Once the letter is issued and takes effect, only employees of FHA-approved lenders and correspondents will be permitted to participate in the origination of HECMs.

Also, HUD lawyers still haven’t resolved whether the bill creates a single national loan limit at $417,000 or $625,500, or area limits at 115% of area median home value, with a floor of of $417,000 and a cap of $625,500.  NRMLA expects to get a final decision from lawyers within the next couple of days.

Advertisement

Join the Conversation (0)

see all

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

  • This article is very confusing. the quote from HUD
    “All parties that participate in the origination of a mortgage to be insured under this section shall be approved by the Secretary” seems to mirror existing policy and law.
    That is, HECM Advisors DO NOT participate in loan originations.
    So tell me what changes???

string(97) "https://reversemortgagedaily.com/2008/07/31/hud-eliminates-reverse-mortgage-hecm-advisor-program/"

Share your opinion