FHA: Wire Transfers to Pay Off Reverse Mortgages, Partial Claims Not Permitted

The Federal Housing Administration (FHA) on Tuesday announced that it has published new Frequently Asked Questions (FAQ) information specifying how Secretary-held Home Equity Conversion Mortgage (HECM) loans can be paid off, reminding the industry and the public that a wire transfer for such a transaction is not permitted. “All payoffs for Secretary-Held HECMs and Partial […]

Biden Expected to Pick Fudge of Ohio as HUD Secretary

President-elect of the United States Joe Biden is expected to name U.S. Rep. Marcia L. Fudge (D-Ohio) as the next Secretary of the U.S. Department of Housing and Urban Development (HUD), according to reporting at the Washington Post and New York Times. As the nominee-designate to lead HUD, Fudge is coming off of a 12-year […]

HUD Secretary Will Face Major Problems in Light of Pandemic in 2021

While several names have been floated recently in terms of who President-elect of the United States Joe Biden may nominate for Secretary of the U.S. Department of Housing and Urban Development (HUD), one thing is for certain: the next HUD Secretary will face a series of major problems and obstacles that must be addressed stemming […]

[Updated] Reverse Mortgage Lending Limit Rises to Over $822k in 2021

The lending limit for federally-backed reverse mortgages is increasing for the fifth consecutive year in a row, set to hit $822,375 in 2021. The Department of Housing and Urban Development (HUD) announced on Wednesday via Mortgagee Letter (ML) 2020-42 a maximum claim amount of $822,375 for calendar year 2021, a rise of $56,775 from the […]

FHFA Increases Conforming Loan Limits for Fannie, Freddie in 2021

The Federal Housing Finance Agency (FHFA) announced on Wednesday that it would be increasing the conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for the fifth consecutive year. In most of the United States, the maximum conforming loan limit for one-unit properties in 2021 will be $548,250, an increase […]

November Election Results Could Impact Key Reverse Mortgage Issues in 2021

The results from the November general election in the United States could have notable impacts on key issues relevant to the reverse mortgage industry including the selection of a new servicing contract for the Federal Housing Administration (FHA), the legislative priorities of the White House and Congress as it relates to matters of housing, the […]

HUD Secretary Carson Back to Work After COVID-19 Illness

Secretary for the U.S. Department of Housing and Urban Development (HUD) Dr. Ben Carson is said to be recovering after contracting the COVID-19 coronavirus, describing himself as having become “desperately ill” with the disease before coming “out of the woods” according to a Facebook post made by the secretary on behalf of him and his […]

FHA: Reverse Mortgage Servicing Contract ‘In-Process,’ Agency Eyes Smooth LIBOR Transition

The Federal Housing Administration (FHA) is continuing to seek a new servicing contract for Home Equity Conversion Mortgages (HECMs) sponsored by the federal government, but the agency remains dedicated to providing as much additional relief as possible to reverse mortgage borrowers that have been impacted by the COVID-19 coronavirus pandemic. This is according to Kasey […]

FHA’s Proposal for Private Flood Insurance Applies to Reverse Mortgages

The Federal Housing Administration (FHA) last week released a proposed rule which would allow a private flood insurance option instead of insurance through the National Flood Insurance Program (NFIP), when flood insurance is required by FHA. This is a change that would potentially apply to all single family mortgage programs under FHA, including the Home […]

FHA: Reverse Mortgage Performance Improves as Data Shows Borrower Preferences Change

The Home Equity Conversion Mortgage (HECM) program has seen a general increase in activity over the course of fiscal year 2020, though some of that increase can be attributed to higher levels of refinance transactions and unique components of the mortgage market observed during the COVID-19 pandemic. A longer view also shows some interesting shifts […]