FHA Commissioner: HECM Program Improving, Still Needs ‘Structural’ Change

The Federal Housing Administration (FHA) is encouraged by the increasing health of the Home Equity Conversion Mortgage (HECM) program inside the Mutual Mortgage Insurance Fund (MMIF) as revealed by the department’s annual report to Congress last week, but must continue to address remaining deficiencies in it after a series of major changes in 2017 and […]

[Updated] MMI Report Shows Improvement in FHA Reverse Mortgage Portfolio

The reverse mortgage portion of the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund (MMIF) continues to stand at a negative capital ratio on the overall government-backed portfolio, according to an annual actuarial review of the fund’s finances released Thursday morning. However, it has made notable progress over the past year, increasing $7.7 billion in […]

HUD Sec. Carson: HECM Changes Positive With More Reforms Needed

Secretary of the Department of Housing and Urban Development (HUD) Dr. Ben Carson reiterated Tuesday his and the department’s commitment to addressing the financial viability of the Home Equity Conversion Mortgage (HECM) program, stating recent program changes have been “directionally positive.” He shared this commitment in a statement submitted to the House Financial Services Committee […]

New Reverse Mortgage Protections ‘Win-Win’ for Servicers, Non-Borrowing Spouses

After the release of two Mortgagee Letters by the Federal Housing Administration (FHA) in late September outlining new provisions for the Home Equity Conversion Mortgage (HECM) program, reverse mortgage servicers are responding positively to the expansion of protections for non-borrowing spouses (NBS). Mortgagee Letter 2019-15 updates the Mortgagee Optional Election (MOE) Assignment for HECMs with […]

Trump Nominates Montgomery for Full-Time Deputy HUD Secretary

President Donald Trump has nominated current Federal Housing Administration (FHA) Commissioner and Acting Deputy Secretary of the Department of Housing and Urban Development (HUD) Brian D. Montgomery to assume the full-time position of Deputy HUD Secretary, a position he’s been serving in an acting capacity since January of 2019. He is the first individual to […]

FHA Updates Non-Borrowing Spouse Resources for Consumers

The Federal Housing Administration (FHA) Office of Single Family Housing has released new consumer resources this month dedicated to offering information for eligible non-borrowing spouses (NBS) in reverse mortgage transactions, RMD has learned. These new resources, made available shortly after the release of new rules expanding NBS protections, offer key information for spouses who have […]

HUD Releases New Condo Rules for Reverse Mortgages

The U.S. Department of Housing and Urban Development (HUD) issued a new Mortgagee Letter (ML) late Thursday updating the origination requirement for FHA mortgages on condominium units, applicable to both the traditional, forward mortgage and reverse mortgage programs simultaneously. The letter provides additional clarification ahead of the rule’s implementation on October 15. “FHA published ML […]

FHA Extends HECM Second Appraisal Rule, Expands Non-Borrowing Spouse Protections

The Federal Housing Administration (FHA) announced Monday that it will continue its Home Equity Conversion Mortgage (HECM) collateral risk assessment requirements announced in 2018, and will relax requirements for some non-borrowing spouses to defer repayment of reverse mortgage loans. The agency relayed the changes in two separate mortgagee letters issued Monday, both being effective immediately. […]

HUD Secretary Gives HECM Update to Senate, House HECM Hearing Nears

On the heels of a housing proposal including major reverse mortgage program overhauls, HUD Secretary Dr. Ben Carson stressed the Home Equity Conversion Mortgage issues in prepared remarks Tuesday. This, as the House of Representatives prepares to convene a hearing later this month specifically centered on the HECM program. Carson’s remarks, prepared for a Senate […]

Reverse Mortgage Industry Cautious About Trump HECM Proposals

Late last week, the United States Department of the Treasury under the direction of President Donald J. Trump unveiled a new series of proposals aimed at improving the nation’s housing finance system, including a number of proposed changes to the Home Equity Conversion Mortgage (HECM) program. While the housing industry largely applauded the proposed changes, […]