The Department of Housing and Urban Development has filed a formal request for comments on the changes it recently outlined regarding reverse mortgage non-borrowing spouses.
The changes, detailed in Mortgagee Letter 2014-07 in late April, specify for the first time that non-borrowing spouses can defer the repayment of their spouse’s reverse mortgage if the borrower should pass away or need to move from the home.
Now, HUD has requested comments that will help shape the proposed rule, which extends insurance eligibility to properties inhabited by non-borrowing spouses who continue to uphold the terms of the loan.
“Although this extension of mortgage insurance eligibility requirements will be part of FHA’s upcoming proposed rule on HECM, FHA solicits comment in advance of the proposed rule. Comments submitted in response to this solicitation will be taken into consideration in the development of the proposed rule,” HUD writes in its comment request.
All comments are due on June 2.
Written by Elizabeth Ecker