In case you missed it… here’s what happened in reverse mortgage news this week.
New HUD Guidance Poses Challenges for Reverse Mortgage Lenders—A week after issuing a mortgagee letter spelling changes for seasoning requirements for prospective borrowers’ non-reverse mortgage liens, HUD hosted a conference call with industry participants to explain the new guidance. Originators say the changes are going to present major challenges for many prospective borrowers.
For Reverse Mortgage Lenders, Financial Assessment is a Whole New Ball Game—In response to the financial assessment proposed by HUD last week, lenders say the final guidance is welcome, but that it will rule out some borrowers. How many is still to be determined, but lenders are working now to gauge the potential impact.
Florida Foreclosure Sparks Reverse Mortgage Feud—A reverse mortgage case in Florida prompted a feud between servicer and borrower. The borrower maintains he has continued to live in the home, while the servicer says it was not kept as a primary residence. Complications also stemmed from the fact the borrower says he can’t read.
Financial Footing of FHA Portfolio Improves for Forward—Falls for Reverse—The Federal Housing Administration’s annual actuarial review shows its forward book of business is on a steady path to improvement, while reverse mortgages still presented shortfalls for the FHA’s Mutual Mortgage Insurance fund last fiscal year.
HUD Details Financial Assessment With Reverse Mortgage Industry Participants—In a follow up to its release of financial assessment guidance last week, HUD detailed some of the items covered by the assessment, and gave lenders some insight into how the assessment is to be used.
Written by Elizabeth Ecker