HUD

The U.S. Department of Housing and Urban Development announced today that it is making $4 million available to counseling agencies to cover the costs of HECM counseling in fiscal year 2012.

Recent reforms have contributed to improving the financial health of the HECM program moving forward, according to an independent actuarial study published last week.

In a letter published today by Acting FHA Commissioner Carol Galante, lenders are authorized to underwrite HECM loans so they can identify customers who are potentially at risk of defaulting on their reverse mortgages because they can no longer meet their financial obligations.

Following is a complete list of mortgagee letters that directly impact the HECM program or are worth noting because they apply to lenders that originate HECM loans.

FHA today published updated condominium policy guidelines and instructions that clarify the approval and recertification process and policies for condo projects.

Recently, NRMLA received an email from a member asking whether any fees for services are allowed to be charged to a borrower if a lender receives a faxed copy of the counseling certificate signed by the counselor, but not the borrower.

Following is a list of HECM program contacts at HUD's four regional Home Ownership Centers, and at headquarters.

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.

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

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.