The comment period is drawing closer to an end for all reverse mortgage industry stakeholders to voice their concerns on the Federal Housing Administration’s most recent proposals for the Home Equity Conversion Mortgage program.
Commenters now have less than two weeks to submit their remarks to the FHA rule that proposes to codify several significant changes to the HECM program—the due date being July 18, 2016.
While some of these changes have already been issued by FHA, the rule proposes several new updates to the HECM program, including capping lifetime interest rate increases on all adjustable-rate HECMs to 5%. Another provision intends to reduce the cap on annual interest rate increases on HECM ARMs from 2% to 1%.
As of this writing, there are currently 13 public comments that can be viewed at the Regulations.gov website.
The Department of Housing and Urban Development (HUD) “strongly encourages” commenters to submit responses electronically, as this method not only allows commenters the maximum time to prepare and submit comments, but also ensures timely receipt by HUD.
To electronically submit a comment to FHA’s proposed rule, click here.
Written by Jason Oliva