NRMLA, with input from the HUD Issues Committee, submitted comments to the Department of Housing and Urban Development that support a draft proposal to allow income from Accessory Dwelling Units to be used in qualifying borrowers for FHA-insured mortgages, including Home Equity Conversion Mortgages.
“ADUs have the potential to increase housing affordability, facilitate the use of existing housing in established communities, and, in the case of seniors, may better enable them to stay near their family as they age,” says NRMLA. “Permitting the inclusion of income from an ADU in the assessment of a HECM borrower’s income will more realistically calculate the borrower’s effective income and potentially expand program eligibility in a prudent manner.”
Notwithstanding NRMLA’s support of FHA’s initiative, the association recommends that certain aspects of the draft Mortgage Letter be further clarified, including the treatment of an ADU on or within a 2-4 unit property.
A working group from the HUD Issues Committee comprised of outside counsel Joel Schiffman of Weiner Brodsky Kider PC; HUD Issues Committee Chairwoman Elly Johnson of All Reverse Pro; Carmalon Batiste of Traditional Mortgage Acceptance Corporation; Kelly McCabe of CrossCountry Mortgage; and Jackie Kenney of Finance of America Reverse assisted in the drafting of the comments.
