Homeowners who are looking to get a reverse mortgage on their co-op will be able to soon according to an article from the New York Times.
The question was posted in its Real Estate Q&A over the weekend.
Eric D. Sherman, a Manhattan real estate lawyer, said that a HECM for co-ops should be available “within a matter of weeks, not months,” and that co-op shareholders should contact local lenders to find one that can make such loans.
Sherman suggested that co-op shareholders should start requesting board approval before they begin the HECM application process.
RMD contacted HUD looking for clarification on this because at the NRMLA Annual Conference, Meg Burns, Director, Office of Single Family Program Development of Federal Housing Administration didn’t seem as confident and provided no time table for when the Mortgagee Letter for Co-Ops would be published.
While HUD is typically very responsive to questions on these topics, RMD has yet to receive a response. So, while Mr. Sherman thinks Co-Ops are coming in a matter of weeks, I think he is being a little too optimistic.