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 […]

FHA Lifts 2-Year Ban on Sun City Reverse Mortgages

After more than two years of waiting, residents at the Sun City retirement community in Arizona can once again open Home Equity Conversion Mortgages thanks to a new approval from the the Department of Housing and Urban Development. Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Ariz., said he received word from his […]

NRMLA Leaders Support New Reverse Mortgage Appraisal Rules

In a message to its members Tuesday, the National Reverse Mortgage Lenders Association’s co-chairs reiterated the trade group’s support of the latest changes to the Home Equity Conversion Mortgage appraisal process — a shift designed to stop losses to the Mutual Mortgage Insurance fund. Written by leaders Joseph DeMarkey, the strategic business development leader of […]

What the New Appraisal Rules Mean for the Reverse Mortgage Industry

After the changes to the Home Equity Conversion Mortgage’s appraisal process took effect earlier this week, reverse mortgage professionals are anticipating what they might mean to the industry. Last week, the Federal Housing Administration announced that all HECM appraisals will be subject to a proprietary collateral risk assessment. If the results suggest the first appraisal […]

FHA’s Montgomery: New HECM Appraisal Rules Less Impactful Than Other Changes

The Federal Housing Administration has been exploring potential options to stem the reverse mortgage program’s negative impact on the Mutual Mortgage Insurance Fund, and its leader on Monday positioned the government’s new appraisal requirements as the best of multiple difficult choices. “We do understand that our policy changes are going to be challenging initially for […]

One Year Later, Reverse Mortgage Leaders Reflect on the October 2017 Changes

It’s been an eventful fiscal year for the reverse mortgage industry. Stemming from the Home Equity Conversion Mortgage program changes last October, the last 12 months have brought lower origination volume, proprietary product innovation, originator diversification, and — most recently — changes to the HECM appraisal process. When last year’s HECM changes hit — with […]

FHA to Require Second Reverse Mortgage Appraisals Beginning October 1

The Federal Housing Administration on Friday announced a new appraisal requirement for Home Equity Conversion Mortgage lenders in another attempt to stem losses to the Mutual Mortgage Insurance Fund. Starting with case numbers assigned October 1, the FHA will perform a collateral risk assessment on all reverse mortgage appraisals, then require a second appraisal if […]