Following an announcement from the Federal Housing Administration last week indicating lenders will be granted an extension before a forthcoming financial assessment goes into effect, formal guidance is expected to come within a week, sources in HUD confirmed to RMD.
FHA commissioner Carol Galante told attendees of the National Reverse Mortgage Lenders Association conference in New Orleans last Monday that lenders would be granted “a little more time, but not a lot.”
“We’ve just [received] the comments,” Galante said in a keynote address of the industry. “We’re looking at the changes and want to ensure you have a little more time.”
HUD expects to issue formal communication that addresses the time frame previously outlined in a September mortgagee letter, with that communication anticipated to be published within a week, according to sources.
The extension beyond the original implementation date of January 13 is still unknown.
The agency issued a request for public comment in October in seeking feedback from the industry and public on the assessment. NRMLA submitted comments seeking clarification on several points outlined in the mortgagee letter.
The financial assessment will consider both a borrower’s willingness and capacity to pay his or her loan obligations, including tax and insurance associated with the property, that will span cash flow analysis as well as credit history in some borrower cases.
Written by Elizabeth Ecker