FHA Proposes Rule Changes to Increase Clarity, Lender Activity

The Federal Housing Administration (FHA) has announced several proposed changes to its loan-level certification requirements for both lenders and borrowers, designed to improve clarity of compliance rules, and to expand financing options for borrowers in an effort to bring more depository institutions back into the FHA lending process. “Today, we are proposing to overhaul the […]

HUD: Reverse Mortgage Volume Falls in Q1 2019

The total volume of Home Equity Conversion Mortgages (HECM) endorsements in Q1 2019 dropped by 18.19 percent from the previous quarter to $2.48 billion, while HECM endorsement counts in FY 2019 Q1 declined 17.67 percent from last quarter to 7,388 loans. This is according to the U.S. Department of Housing and Urban Development (HUD) Federal […]

FHA Updates Single Family Housing Policy Handbook

The Federal Housing Administration (FHA) published an update Wednesday to its Single Family Housing Policy (SF) Handbook, the first published update to the document since December of 2016. “With today’s update, FHA is recommitting to the industry that it will continue to maintain and enhance the SF Handbook so that it becomes a single, comprehensive […]

President Trump Calls for U.S. Housing Reform Plan, Review of HECM Program

President Donald J. Trump signed an executive memorandum Wednesday initiating the process of reforming the United States housing system, which includes an objective to examine the “financial viability” of the Home Equity Conversion Mortgage (HECM) program. The president has expressed his intent to end the conservatorship of Freddie Mac and Fannie Mae that has been […]

New HECM Head Hopes to ‘Move Needle’ in New Role

The new Senior Advisor to the Department of Housing and Urban Development (HUD) Deputy Assistant Secretary for Single Family Programs, Dr. Joshua Miller, introduced himself Monday to the reverse mortgage industry by giving a Home Equity Conversion Mortgage (HECM) program update to assembled reverse mortgage professionals. Miller, named to his new post in mid-February, offered […]

FHA Updates Guidance to Streamline Two ‘Redundant’ Mortgage Rules

The Federal Housing Administration (FHA) released two Mortgagee Letters on Tuesday, with both stating an intent to “streamline” its guidance on two different lending provisions. This, the agency says, is in an effort to reduce potential obstacles in the mortgage process for borrowers. In Mortgagee Letter (ML) 2019-04 titled “Removal of the Federal Housing Administration […]

Reverse Originators See Mixed Bag in New Borrower Verification Policy

Last week, the Federal Housing Administration (FHA) issued a new mortgagee letter implementing policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. The letter applies to all FHA Title II traditional and reverse mortgages. FHA details that the new […]

HECM Financial Assessment Streamlined With FHA Policy Shift

The Federal Housing Administration (FHA) has issued a new mortgagee letter offering policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. In Mortgagee Letter 19-01, released by the agency on Friday, FHA revises documentation requirements for the financial assessment […]