The class, which will be offered via the software provider’s proprietary ReverseVision University (RVU) solution, is titled “Understanding the New Rules Regarding Non-Borrowing Spouses.”
Zeroing-in on the changes enacted by the Department of Housing and Urban Development’s (HUD) Mortgagee Letters 2014-07 and 2014-12, the course is available to anyone, even non-ReverseVision customers.
“The class is available to anyone interested in learning what these rules are really about,” stated Rachel Smith, RVU’s product manager. “You don’t need to be a ReverseVision customer to enroll for free.”
The new rules, as outlined via HUD’s two mortgagee letters, are important steps in the right direction for the reverse mortgage industry, said ReverseVision Executive Vice President Rob Katz.
“Under the old rules, it was beneficial to the borrower to exclude a younger spouse from being part of the loan, but that could lead to problems for the non-borrowing spouse when the borrower dies,” Katz stated. “These new rules make it easy for that non-borrowing spouse to keep their home in the future.”
Additionally, ReverseVision intends to help lenders overcome certain challenges related to HUD’s June PLF update before the rule takes effect in the coming weeks.
“What makes the Principal Limit Factor change a challenge for the lender is that they don’t take effect until August 4, yet HUD wants lenders to work with borrowers to figure which factor will be best for them now,” Katz stated.
To support the new HUD rules, ReverseVision has updated its core loan origination system, RV Exchange, including both the PLF and non-borrowing spouse guidelines.
Last month, the company updated RV Exchange by integrating Landmark Network’s appraisal services, in efforts to ease ordering appraisals via its loan origination platform for its customers.
Written by Jason Oliva