While reverse mortgage technology and software provider ReverseVision is ready for the Department of Housing and Urban Development’s (HUD) Financial Assessment rule, HUD’s recently announced delay is good news, the company says.
“HUD’s decision to delay the effective date for Financial Assessment is very welcome,” ReverseVision President & CEO John Button tells RMD. “Now HUD and the industry will be much better prepared to meet the needs of borrowers.”
The additional time will make it possible for ReverseVision to continue adding a more complete feature package that will improve lenders’ workflow and speed up back office time, he says.
The new effective date for the FA is expected to be within 30 to 60 days of the original March 2, 2015 effective date, according to previous Mortgagee Letters.
“While ReverseVision was ready to deliver updated software by the original implementation date, resolving these open details with HUD will reduce the need to release additional software updates,” he says. “Lenders will now have time to implement updated software tools in their training and operating process before engaging with borrowers on loans that include FA.”
The delay will also give HUD more time to issue decisions on a few open details before the effective date.
“[For example] life expectancy set aside (LESA) treatment in amortization schedules,” he says. “They will also be able to complete updates to key tools like the HUD Calculator and Home Equity Reverse Mortgage Information Technology (HERMIT) .”
Written by Cassandra Dowell