Friday Round-Up: Reverse Mortgage Apps Drag, Senators Seek Answers

In case you missed it…here’s what happened in reverse mortgage news this week.

Reverse mortgage applications plunge after FHA changes. The Federal Housing Administration’s (FHA) moratorium on the fixed rate standard reverse mortgage has resulted in a sharp decline for application volumes since the April 1 product suspension.

HUD updates reverse mortgage non-recourse language. Borrowers and their heirs will only be responsible for repaying 95% of the appraised home value under the Department of Housing and Urban Development’s (HUD) revised reverse mortgage handbook.

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U.S. Senators question the future of reverse mortgage program. Reverse mortgage stakeholders answered questions Tuesday before a Congressional panel on the best course of action for sustaining the Home Equity Conversion Mortgage program

Low interest rates bad for annuities, good for reverse mortgages. While low interest rates unfavorably impact the amount earned on annuities, some see a silver lining in the borrowing power of these low rates.

HUD awards funding for housing counseling. The $40 million in funding awarded by HUD will extend to housing counseling agencies nationwide, including reverse mortgage counseling services. 

Written by Jason Oliva

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  • Despite reservations about decoupling a public comment segment to HUD rule making, for the sake of the HECM program these powers seem warranted and should be enacted as soon as possible.

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