The Department of Housing and Urban Development (HUD) released a list of its accomplishments in 2018, highlighting a series of decisions and results that include those relating to the Mutual Mortgage Insurance (MMI) fund and the Home Equity Conversion Mortgage (HECM) program. The document released by HUD credits the leadership of department secretary Ben Carson, and the policy initiatives of the Trump Administration.
Among the key accomplishments related to the reverse mortgage industry detailed in HUD’s document includes the implementation of “several needed changes” to the HECM program – such as the September 2017 servicing policy changes, and October 2017 changes to Mortgage Insurance Premiums (MIPs) and Principal Limit Factors (PLFs) – which the agency says have helped to, “improve [the HECM program’s] financial health and ensure it remains a resource for future senior borrowers.”
HUD also touted the implementation of a new second appraisal rule as an important accomplishment made with the intent of improving the HECM program’s health.
“[HUD reduced] inflated appraised values on HECM properties to further reduce risk to FHA’s Mutual Mortgage Insurance Fund, which should reduce the claim amounts FHA may be paying out unnecessarily for HECM mortgages,” the document reads.
Reverse mortgage professionals have been adjusting to these policy changes since their respective implementations, which most believe led to a rocky year of business in 2018. Optimism appears to be on the rise, however, particularly as reverse mortgage firms diversify their offerings and create more proprietary products to fill any gaps in business they perceive.
Read the full document listing HUD’s 2018 accomplishments in the housing sector.