Urban Institute on HECM Program Health, MMI Fund, Second Appraisals and More

The Home Equity Conversion Mortgage (HECM) program has been experiencing difficulties in securing greater volume over the past year, particularly since changes were made to principal limit factors (PLFs) and insurance structure (MIP) in October of 2017. HECM program observers and proponents have sometimes argued that separation of the forward and reverse mortgage programs under […]

Urban Institute Makes Reverse Mortgage Suggestions Within 2019 FHA Trends

Because of losses that the Federal Housing Administration (FHA) estimates for the Home Equity Conversion Mortgage (HECM) program in 2019, FHA should release more loan-level data on the reverse program, as well as separate the HECM program from the forward mortgage program in the calculation of statutory minimum ratios. This is according to a blog […]

HUD Deputy Secretary Pam Patenaude Resigns

Pamela H. Patenaude, the deputy secretary of the U.S. Department of Housing and Urban Development (HUD) under Secretary Ben Carson, resigned from her position on Monday, which will go into effect sometime in early 2019. “Serving at HUD as Deputy Secretary has been the highlight of my 35-year career in housing,” Patenaude said in a […]

[Updated] Reverse Mortgage Lending Limit To Rise in 2019

The lending limit for federally-backed reverse mortgages is increasing for the third consecutive year in a row and is set to rise to $726,525 in 2019. The Department of Housing and Urban Development (HUD) announced on Friday via Mortgagee Letter 2018-12 a maximum claim amount of $726,525 for calendar year 2019, up from $679,650 in […]

HECM Second Appraisal Process Becomes Fully Automated

The Federal Housing Administration (FHA) announced today that as of Friday November 30, 2018, the protocols governing new second appraisal requirements for Home Equity Conversion Mortgages (HECMs) will become fully automated. The HECM second appraisal rule was first announced on September 28 in Mortgagee Letter 18-06, which outlined a series of procedures deployed on an […]

FHA Automates User ID Processes

The Federal Housing Administration is discontinuing paper documentation and moving to email for two parts of the user ID assignment process for application coordinators. Both changes will be effective November 9. Under one change, mortgagees’ chief executive officers will begin being notified via email when an employee has been assigned a new user id. The […]

HUD: Falling HECM Volume, Principal Limits Reflect Latest Program Changes

In an effort to illustrate the impacts of the latest reverse mortgage program changes, Federal Housing Administration officials presented supporting data at the the annual National Reverse Mortgage Lenders’ Association conference in San Diego last week. For the past 13 months, the reverse mortgage industry has been adjusting to lower principal limit factors and higher […]

FHA Eases Requirements for HECM Claim Payments

In an effort to streamline the Home Equity Conversion Mortgage claim payment process, the Federal Housing Administration announced Monday that it has updated requirements for servicers assigning loans back to the FHA for processing. Effective upon release, Mortgagee Letter 2018-08 gives FHA-approved servicers more alternatives when it comes to required supporting documentation for their loans […]

FHA’s FAQs Clarify Latest Reverse Mortgage Appraisal Changes

To help clarify the latest changes to the Home Equity Conversion Mortgage appraisal process, the Federal Housing Authority has published new Frequently Asked Questions to help make the transition smoother. The FAQs touch on the expected time frames, property-flipping cases, financing, and other guidance around the new appraisal rule. This newest appraisal change put forth […]

Reverse Mortgage Ban Lifted in More Sun City Communities

Just days after Arizona’s Sun City community announced that its residents could begin obtaining Home Equity Conversion Mortgages, more Sun City 55-and-over communities have gotten the reverse mortgage green light. Originator Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Ariz., said he received a lender alert from Reverse Mortgage Funding on […]