At the end of March HUD issued Mortgagee Letter 2008-8 to provide guidance to lenders who are offering the HECM fixed product. There was confusion on the product which lead to most lenders requiring 100% of funds to be withdrawn at closing. Some lenders would allow a line of credit but the rate was around […]
Category: FHA
It’s no secret that government funding for reverse mortgage counseling is a real issue impacting our industry. HUD has set aside $3 million specifically for HECM counseling which goes to support the national intermediaries such as NFCC, MMI and AARP that support HECM counseling and counselor training. The lack of adequate funding to meet the […]
Inman News had an interesting article that mentioned some of the financial obstacles that are preventing seniors (subscription required) from acquiring reverse mortgages. According to Ralph Rosynek, President of 1st Reverse Financial Services, it’s delinquent student loans. Rosynek said, “the elderly often co-sign for student loans on behalf of their grandchildren”. Not only student loans […]
Last Friday U.S. Department of Housing and Urban Development approved the use of LIBOR Indexes for all FHA Arms and HECM products. HUD felt the change was necessary because LIBOR is both an international index determined on the basis of the world economy and an index that has become very popular in the secondary market. […]
