work to understand and implement,” Packer says. “Some of these may require further clarification from HUD and some may simply require working in partnership with NRMLA to ensure we are providing the optimum experience for our customers while still delivering to the guidelines as HUD would expect.” Packer compliments HUD for giving companies plenty of time from late October, when it released the handbook, to review the changes and meet the April 29 deadline. He also liked that HUD gave companies the option of adopting pieces of the new guidance right away. “HUD has been very generous in allowing us to adopt these changes as we become ready,” Packer says. But there is a downside to having that option, Birdsell says. For businesses that provide reverse mortgage software and technology to companies in the industry, it would be a challenge if a customer would want to implement some changes right away while holding off on other changes. “I wish HUD would’ve just picked the transition date and let the industry have a chance to absorb it first,” Birdsell says. Any time HUD makes a change, companies need to ensure the software can support it. “And that’s one of the biggest challenges, probably for the industry—and definitely for software companies—is you have some lenders that say, ‘Hey, I want to do this piece now.’” Download the Handbook Although HUD might adopt some clarifying language, Johnson says, people should not hesitate to download the PDF version of the handbook. “Everyone offering the HECM product or those interested in getting into the reverse mortgage space should download the guide and keep it handy as their reference tool,” Johnson says. “It is important to note that many topics are covered in multiple sections of the guide, so the user should search by keywords and ensure they have read each section that might pertain to their specific search.” One key takeaway for Johnson is the new handbook offers clear guidance for the HECM for Purchase product. “We have been advocating for changes to the HECM for Purchase program since its inception in 2009,” she points out. “We are pleased to announce FHA has made very positive changes to the HECM for Purchase program, and we encourage everyone to review this section of the guide.” Training By late fall, various groups were offering training, including NRMLA and HUD, and training opportunities will continue. Different companies will handle the training in different ways, depending on their needs, Birdsell and others say. HECM Handbook continued from page 29 “There is no area that is not touched by these changes.” —Bill Packer, chief operating officer at Longbridge Financial 30 REVERSE MORTGAGE / MARCH-APRIL 2024
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