HUD


Understanding FHA's New Appraisal Ordering Guidelines February 12, 2010

On February 15, FHA lenders and brokers will be playing by a new set of rules when ordering appraisals.

A New Year and a New Decade – the Regulatory Outlook for the Reverse Mortgage Industry January 4, 2010

Below is a summary prepared by NRMLA's legal counsel James Milano of Weiner, Brodsky, Sidman, Kider, P.C., detailing several important legal changes that will become effective either on January 1, 2010 or early in 2010.

NRMLA Recommends HUD Continue Correspondent Approval January 4, 2010

On Wednesday, December 30, NRMLA submitted comments to HUD in response to the Proposed Rule eliminating FHA approval of correspondents, increasing net worth requirements for lenders and shifting responsibility for overseeing brokers to lenders.

Letter from FHA Commissioner David Stevens December 18, 2009

FHA Commissioner David Stevens explains his top priorities and responds to concerns over the proposed rule change to eliminate FHA-approval of loan correspondents and raise lender net worth requirements and forthcoming changes to RESPA.

HUD Seeks Changes to Broker Approval Process (Updated) December 3, 2009

The Department of Housing and Urban Development published a proposed rule today that increases capital requirements for lenders and dramatically alters the process by which brokers are approved to originate Federal Housing Administration insured loans.

HUD Publishes Guidance on Approving Condominium Projects (Updated) December 3, 2009

The U.S. Department of Housing and Urban Development published Mortgagee Letters 2009-46a and 2009-46b, which further clarify the process lenders must use to approve new condominium projects.

FHA Codifies 2010 HECM Loan Limits November 30, 2009

The Federal Housing Administration today published Mortgagee Letter 2009-50, which implements the continuing resolution recently passed by Congress that kept loan limits for Home Equity Conversion Mortgages at $625,500 through December 31, 2010.

HUD Officially Implements Counseling Roster and Testing Standards November 10, 2009

This morning, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-47, which implements a final rule published in September that established the HECM Counselor Roster and testing standards that will be used to qualify new HECM counselors.

Update on RESPA November 10, 2009

On October 22, 2009, HUD issued more FAQs for the Real Estate Settlement and Procedures Act (RESPA). These FAQs address what NRMLA’s RESPA Committee determined were four main issues with regard to RESPA’s effect on reverse mortgage transactions.

FHA Mortgagee Letters November 9, 2009

Following is a list of FHA Mortgagee Letters that govern the HECM program.

HUD Publishes Reverse Mortgage Questions in RESPA Q&A October 26, 2009

Last week, HUD published a Q&A pertaining to the impact of reverse mortgages in the new RESPA guidelines due out right after the New Year.

NRMLA Working to Address RESPA Changes October 14, 2009

On November 18, 2008, HUD issued final amendments making numerous and significant changes to Real Estate Settlement Procedures Act (RESPA) rules.

UPDATE: Case Number Assignments & HECM Loan Limit October 1, 2009

A number of NRMLA members have voiced concerns about the possibility that the FHA Connection system might not be up to the task of handling the flurry of requests for case numbers through this evening.

Member Alert: HUD Issues Mortgagee Letter Lowering Principal Limit Factors September 23, 2009

HUD publishes Mortgagee Letter 2009-34 implementing a 10% haircut in principal limit factors, effective for all loans on which applications are taken on or after October 1, 2009.

Member Alert: FHA Publishes HECM Counseling Roster and Testing Standards September 2, 2009

The U.S. Department of Housing and Urban Development today published a final rule implementing its HECM Counseling Roster and testing standards that will be used to qualify new counselors.

20 Years Later, HUD's Szymanoski Still Works to Improve HECM July 7, 2009

About 20 years ago, Edward J. Szymanoski was asked to join a small team within the Department of Housing and Urban Development to build something that hadn't been built before: a financial model for a government product that came to be known as the Home Equity Conversion Mortgage

Member Alert: HUD Mortgagee Letter Clarifies Refinance Guidelines July 2, 2009

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 Recommends Tighter Enforcement of Counseling and Advertising June 29, 2009

The General Accountability Office (GAO) is recommending that FHA tighten enforcement of counselors and that bank regulators work more closely to prevent deceptive advertising.

Member Alert: FHA Issues Mortgagee Letter Streamlining Condo Approval Process June 12, 2009

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.

Member Alert: HUD Issues ML 2009-16 On Manufactured Housing Eligibility and Requirements May 21, 2009

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

Key HECM Regulations

The following section lists the primary regulations pertaining to the FHA's Home Equity Conversion Mortgage Program, used by compliance, underwriting and servicing staff.

MEMBER ALERT: HECM Appraisal Requests April 15, 2009

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

HUD Publishes Mortgagee Letters on Counseling and HECM for Purchase March 31, 2009

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

Member Alert: HECM for Purchase in Texas March 23, 2009

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

Member Alert: FHA Addresses Industry Questions Around New HECM Loan Limit February 27, 2009

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

Member Alert: FHA Officially Raises HECM Loan Limit February 25, 2009

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.

Member Alert: NRMLA Releases Compliance Committee Best Practices February 10, 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.

Member Alert: New Mortgagee Letter Imposes New Requirements on Appraisers December 23, 2008

HUD published a new mortgagee letter which imposes new requirements on appraisers who want to remain on the official FHA Appraiser Roster.

MEMBER ALERT: HUD Updates NRMLA on Pending Mortgagee Letters December 17, 2008

As part of our ongoing conversations with HUD, we want to alert you to a few new developments. HUD is indicating that new Mortgagee Letters (ML) regarding the HECM program are expected to be released soon.

HUD Clarifies Non-Recourse Policy in Mortgagee Letter December 9, 2008

HUD published Mortgagee Letter 2008-38, which clarifies the definition of non-recourse and defines an “arms-length” transaction when the property is sold.

Member Alert: HUD Develops HECM Q&A Page November 13, 2008

HUD created special Q&A pages for lenders to obtain additional information about HECM for Purchase and the new lending limits.

MEMBER ALERT: HUD Publishes Mortgagee Letters Implementing New HECM Loan Limit and Fee Structure November 6, 2008

This afternoon, HUD published Mortgagee Letters implementing the new HECM loan limit and fee structure.

Member Alert: HUD Issues HECM for Purchase Guidance October 28, 2008

Yesterday, HUD issued Mortgagee Letter 2008-33: Home Equity Conversion Mortgage Home Purchase Program.

Member Alert: FHA Update: Implementation of New Loan Limits, Origination Fees and Other Legislative Provisions October 17, 2008

The following memo provides updates based on discussions at yesterday’s meeting of our NRMLA/HUD Work Group and a committee that is developing recommendations for implementation of the McCaskill amendments on cross selling of financial products with reverse mortgages.

HUD Provides Some Clarification on Implementation of New Loan Limits October 10, 2008

In response to the email we sent out the other day regarding the forthcoming implementation of the new HECM loan limits, we received a number of questions and forwarded them to HUD.

HECM Loan Limit Updates October 7, 2008

As NRMLA has previously reported, last week FHA Commissioner Brian Montgomery announced the new single national loan limit for HECMs will be $417,000. We are continually getting more insight into implementation of this change and will report to you as information becomes available.

FHA Announces $417,000 HECM Loan Limit October 2, 2008

This morning, FHA Commissioner Brian Montgomery announced that the new HECM nationwide loan limit (maximum claim amount) will be $417,000. The target effective date is November 1.

New Mortgagee Letter Clarifies Originator Requirements September 18, 2008

HUD published Mortgagee Letter 2008-24—Requirements on Mortgage Originators, which clarifies who is eligible to originate HECMs and discusses the cross sell provisions contained in the Housing and Economic Recovery Act of 2008 (HERA).

HECM Borrowers in Default Benefit from Refi Change September 4, 2008

HUD published a final rule in today's Federal Register that gives existing HECM borrowers in default the ability to pay a reduced MIP if they refinance.

MEMBER ALERT: HECM Non-Recourse Policy Clarification August 27, 2008

As you know, for years, and with good reason, FHA-insured HECM loans generally have been characterized by the FHA, lenders, consumer advocates alike, as "non-recourse" loans to the borrower.

HUD Offers Guidance on Fixed Rate HECMs April 2, 2008

HUD published Mortgagee Letter 2008-8 today, providing guidance to lenders that wish to offer HECMs with a fixed interest rate.

HUD Issues Interim Rule in HECMs January 9, 2008

The U.S. Department of Housing and Urban Development published an “interim” rule in the Federal Register this morning that makes two technical changes to the HECM program.

HUD Mortgagee Letter Clarifies Use of LIBOR October 15, 2007

On October 12, 2007, the FHA issued Mortgagee Letter 2007-12 providing clarification to the previously published rule that lenders may now use LIBOR as an index option with HECM loans. The Mortgagee Letter is effective immediately.

HECM Counseling-Borrower Signatures September 12, 2007

As a service to our members, NRMLA is alerting you to an issue with HECM counseling.

HUD Relaxes Face-to-Face Interviews May 4, 2007

Today, FHA published Mortgagee Letter 2007-08, “HECM Face-to-Face Interviews,” which makes a significant change to the HECM program.

HECM "Loan Advisor" Program

The following Q&A on the HECM "Loan Advisor" program was developed by NRMLA's general counsel, Weiner, Brodsky, Sidman, Kider, P.C., Washington, D.C.

HUD Seeks to Create National Counseling Roster January 8, 2007

Today, the U.S. Department of Housing and Urban Development published a proposed rule in the Federal Register seeking public comment on the adoption of new testing standards to approve individuals as HECM counselors and a national counseling roster.

Renewing Your FHA Status December 14, 2006

The following memo was distributed by HUD to provide guidance to lenders on how to renew their FHA status.

Part-Time “Employees” of HECM Loan Originators: Selected RESPA Section 8, FHA, and State Law Issues

The following Q&A on "part-time" employee relationships was developed by NRMLA's general counsel, Weiner, Brodsky, Sidman, Kider, P.C., Washington, D.C.


All materials copyrighted © 2008 National Reverse Mortgage Lenders Association.