Reverse Mortgage Regulations

With the $625,500 loan limit still in effect for the balance of 2009, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-21 to clarify existing guidelines in anticipation that a certain percentage of borrowers will refinance their reverse mortgages.

GAO published a report today recommending that federal regulators tighten oversight of potentionally misleading advertising of reverse mortgages and that HUD improve its oversight of HECM counseling.

The Department of Housing and Urban Development published Mortgagee Letter 2009-19 today, which implements new approval guidelines for condominium projects to qualify for FHA insured mortgages under Section 203(b) of the National Housing Act.

HUD issued Mortgagee Letter 2009-16, which amplifies and modifies policies regarding eligibility and requirements for FHA-insured loans (included HECMs) on manufactured homes.

As a quick industry reminder, FHA HECM appraisals should not be ordered for HECM loans until an FHA case number is assigned.

The Department of Housing and Urban Development yesterday published Mortgagee Letters 2009-10 and 2009-11 to clarify its policies on counseling and the new HECM for Purchase program.

We want to alert NRMLA members of concerns raised regarding the offering of a true HECM for purchase loan program in Texas.

The NRMLA/HUD Working Group met today to discuss Mortgagee Letter 2009-07 and other important HECM issues.

The U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-07, which officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the balance of 2009.

NRMLA's Compliance Committee developed the following best practices pertaining to property valuation practices, HECM expected rate/principal limit loan lock practices, and HECM refinance practices.

Compliance requirements for reverse mortgages are fast stacking up on lenders as a new set of rules for the product are being embraced by states nationwide.

The Winter 2008 issue of the FDIC's newsletter, Supervisory Insights, features an article titled "Reverse Mortgages: What Consumers and Lenders Should Know."

Consumer privacy is a very hot topic—and as marketing people we all must be aware of the consumer’s right to privacy.

Earlier this week, the Federal Financial Institutions Examination Council announced that it recently updated its "Frequently Asked Questions" on Home Mortgage Disclosure Act reporting as to reverse mortgages.