The US Department of Housing and Urban Development will publish an advance notice of rule making concerning reverse mortgages and will “ask some serious questions that a lot of people may find disconcerting,” said Meg Burns, Director, Single-Family Program Development at HUD.
Burns spoke at the National Reverse Mortgage Lenders Association’s annual conference earlier this week and said the notice will ask the following questions:
- Whether or not FHA should prohibit the proceeds to purchase an annuity altogether?
- Whether or not FHA should limit how the proceeds are used in general?
- Whether or not FHA should limit the full draw to certain types of needs?
"We think it’s appropriate to ask these questions because these are the issues the come up all the time with lawmakers," added Burns. After the notice is published, HUD will be asking for the industry to comment.