The Department of Housing and Urban Development (HUD) says it will resume insuring reverse mortgages now that a partial deal has been reached in Washington to fund the government and raise the national debt ceiling.
Earlier this month, HUD ceased insurance of Home Equity Conversion Mortgages (HECMs) due to a cap on the number of these loans that can be insured by law. Without funding, HUD was forced to stop issuing insurance to reverse mortgages throughout the 16-day shutdown.
In order to issue endorsements, HUD not only needed the cap to be lifted, but also required confirmation of sufficient commitment authority to be in place as well, a HUD official told RMD.
Now that both are in place, the agency said it can continue to insure HECMs at least through January 15, 2014, since that is extent of the funding deal.
Written by Jason Oliva