FHA Extends Relief for Reverse Mortgage Borrowers in Pandemic to End of 2020

The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) are extending previous relief provisions which involved instructing servicers of Home Equity Conversion Mortgages (HECMs) to delay due and payable requests on reverse mortgage loans for borrowers that request such relief, since an American at risk of losing his or […]

FHA Issues Due and Payable Waivers for Reverse Mortgage Non-Borrowing Spouses

The Federal Housing Administration (FHA) on Thursday announced the issuance of temporary waivers for non-borrowing spouses (NBS) of Home Equity Conversion Mortgage (HECM) borrowers, superseding the instructions of two previously released Mortgagee Letters (MLs) due to ongoing concerns related to the COVID-19 coronavirus pandemic. “Eligible HECM NBS currently have 90 days after the death of […]

[Updated] FHA Commissioner: Reverse Mortgage Program Should Be Removed from MMIF

The Home Equity Conversion Mortgage (HECM) program continues to lose money for the Federal Housing Administration (FHA), and likely needs to be removed from the Mutual Mortgage Insurance Fund (MMIF) in order to stop forward mortgage borrowers from subsidizing their reverse mortgage counterparts. This is according to newly-installed FHA Commissioner Dana Wade, speaking with a […]

HUD Secretary Carson Indicates He May Remain Beyond Trump’s Term

Secretary of the U.S. Department of Housing and Urban Development (HUD) Dr. Ben Carson could remain working for the Trump Administration should the president be re-elected in November, according to notes which were seen by reporters during a speech he delivered in Atlanta this week. The presence of the notes was originally reported by Bloomberg. […]

FHA Updates Reverse Mortgage HERMIT Software to Improve HECM Termination Reporting

The Federal Housing Administration (FHA) announced on Wednesday that the Home Equity Reverse Mortgage Information Technology (HERMIT) system has received a second software update within the span of a single week, this time to the system’s file format and layout. “Today, the Federal Housing Administration (FHA) announced updates to the Home Equity Reverse Mortgage Information […]

FHA Updates Reverse Mortgage HERMIT Software for COVID-19 Extensions

The Federal Housing Administration (FHA) announced on Thursday that the Home Equity Reverse Mortgage Information Technology (HERMIT) system has received a software update, which will allow reverse mortgage servicers to submit extensions under the provisions of the presidentially-declared national emergency stemming from the COVID-19 coronavirus pandemic. Issued in conjunction with the most recent extension to […]

FHA Expands Catalyst Functionality for Post-Closing Review, Including Reverse Mortgages

The Federal Housing Administration (FHA) case binder module “Catalyst” now has additional functionality designed to streamline the review of loans post-closing, along with adding new requirements for the electronic submission of case binders selected for post-endorsement review in the Loan Review System (LRS). This is according to the publication of Mortgagee Letter (ML) 2020-29 published […]

FHA Extends Relaxed Appraisal Requirements Through End of October

The Federal Housing Administration (FHA) announced late Friday afternoon that it is extending its relaxed appraisal requirements for most FHA-insured loans originated during the COVID-19 coronavirus national emergency. The extension, announced in Mortgagee Letter 2020-28 is effective for all appraisals submitted through October 31. Previously, the allowance for desktop and curbside appraisals was in place […]

HUD Extends Moratorium on Foreclosures, Evictions Through End of 2020

The U.S. Department of Housing and Urban Development (HUD) announced today that it is extending its previously-enacted moratorium on foreclosures and evictions through the end of 2020, effective immediately. This is according to the publication of Mortgagee Letter (ML) 2020-27 released on Thursday morning. The moratorium continues to apply to homeowners with FHA-insured Title II […]

HUD Office of Inspector General Issues Reverse Mortgage Fraud Bulletin

The U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) has issued a fraud bulletin aimed at informing the public about illegitimate reverse mortgage scams, noting that interest in the product category has risen due to the ongoing economic impacts of the COVID-19 coronavirus pandemic. Since the product category is […]