HUD Publishes HECM For Purchase Counselor Training Presentation

HUD recently published a HECM for Purchase Training presentation for HECM counselors on its website.  The powerpoint includes slides that covers the monetary investment requirement, allowable funding sources, role of the real estate agent, and other topics regarding the HECM for purchase. Along with the powerpoint, HUD posted a recorded conference call it conducted for […]

HUD Updates Eligibility Requirements For FHA Appraiser Roster

Last week the HUD published Mortgage Letter 2008-39 which imposes new requirements on appraisers who want to remain on FHA’s Appraiser roster, as required under the Housing and Economic Recovery Act (HERA). Starting October 1, 2009, FHA will require all appraisers on its roster to be certified by the state in which the property to […]

FDIC Publishes Report On What To Know About Reverse Mortgages

The Federal Deposit Insurance Corporation recently published Reverse Mortgages: What Consumers and Lenders Should Know. The report goes over the the history of reverse mortgages and why the aging population presents such an opportunity to banks. While there is big opportunity in catering to the aging demographic, the report notes that financial institutions have been […]

More Press Coverage About New HECM For Purchase Program

This weekend the Hartford Courant published Senior Home Buyers Allowed To Use Reverse Mortgage which goes over the upcoming HECM for purchase program.  Journalist Theresa Sullivan Barger writes about the new program which is set to become active January 1, 2009. According to the article, the Federal Housing Administration noticed an increasing number of seniors […]

HUD – Ooops, Our HECM Predictions Are A Bit High

After I posted FHA Outlook Report Shows Projected HECM Volume Up, different RMD readers were quick to mention that the numbers didn’t make much sense.  According to HUD’s numbers, they are projecting that there will be 200,000 HECM applications and 210,000 endorsements in FY 2009.  I’m no mathematician, but it’s hard to have more endorsements […]

Obama Names New HUD Secretary, What Does It Mean For Reverse Mortgages?

Over the weekend, President-elect Barack Obama announced that Shaun Donovan will become the new secretary of Housing and Urban Development.  Donovan, a trained architect, served in the housing agency under President Bill Clinton and has been commissioner of housing in the New York City government since 2004.  In Obama’s announcement, he said HUD will be […]

State Of The Reverse Mortgage Counseling Industry 2008 Report

HUD’s Office of Policy Development and Research recently published its 2008 State of the Housing Counseling Industry  Report.  The study covers all types of education and counseling services and provides an overview of the housing counseling industry and investigate the challenges it faces. A substantial amount of the report discusses how HECM counseling will continue […]

FHA Outlook Report Shows Projected HECM Volume Up

According to the most recent FHA Outlook report, HUD is predicting that the reverse mortgage industry will endorse 210,000 HECMs in Fiscal Year 2009.  The prediction is 97,846 endorsements higher than the FY 2008 volume from the report.    FHA’s Outlook report shows a semi-monthly statistical summary of application insurance endorsement, delinquency and claim information on […]

HUD Publishes New Reverse Mortgage Servicing FAQ

The Department of Housing and Urban Development recently published a new FAQ document for servicing questions related to HECMs.  The FAQ includes 12 different questions that cover a range of topics.  It’s good to see HUD taking a proactive approach to addressing questions through its website. I’ve listed a couple of the questions below, to […]

HUD Publishes Clarification of Non-Recourse Policy For HECMs

Today the Department of Housing and Urban Development published Mortgagee Letter 2008-38 to provide further clarification regarding the requirements for repayment of Home Equity Conversion Mortgages (HECMs) and for termination of a HECM mortgage. HUD’s Handbook 4235.1 REV-1, Home Equity Conversion Mortgages, provides in Paragraph 1-3C, that: The HECM is a “non-recourse loan”. This means […]