HUD Secretary Backs Better Forecasting Tools for HECM; Comments on Co-Ops and Recent Reg Changes

Testifying before the House Financial Services Committee this morning, Housing Secretary Ben Carson said he would consider adopting better tools for FHA to assess and manage risk in the Home Equity Conversion Mortgage program, including the creation of a separate insurance fund just for HECMs. “Those are things worth pursuing,” said Secretary Carson, in response … more HUD Secretary Backs Better Forecasting Tools for HECM; Comments on Co-Ops and Recent Reg Changes

Member Alert: FHA Updates Frequently Asked Questions Regarding H4P Transactions

To: All NRMLA Members As we reported in last evening’s Weekly Report, NRMLA has been communicating with the Department of Housing and Urban Development on HECM for Purchase issues and asking for relief for those borrowers who may have made earnest money deposits ahead of the pending PLF changes. In response, the Federal Housing Administration this … more Member Alert: FHA Updates Frequently Asked Questions Regarding H4P Transactions

NRMLA Seeks Grace Period for H4P Borrowers

NRMLA has been communicating with the Department of Housing and Urban Development on HECM for Purchase issues and asking for relief for those borrowers who may have made earnest money deposits. New principal limit factors will adversely impact consumers who are under contract to buy a newly constructed home with financing through the H4P program. … more NRMLA Seeks Grace Period for H4P Borrowers

HUD Releases Updated HERMIT Software

The Department of Housing and Urban Development released new enhancements to the Home Equity Reverse Mortgage Information Technology (HERMIT) platform that servicers use to collect mortgage insurance premiums, file insurance claims and assign loans to FHA. Of particular note, HERMIT System Changes – Release 5.4 provides access to Death Master Files (DMF) from the Social Security Administration … more HUD Releases Updated HERMIT Software

FHA Provides Property Inspection Waiver for Florida and Foreclosure Relief for Georgia Counties

The Federal Housing Administration published a policy waiver on the timeframe for completing inspections of properties prior to closing or submitting mortgages for insurance endorsement in Presidentially-Declared Major Disaster Areas of Florida impacted by Hurricane Irma. The Department of Housing and Urban Development announced separately that it would grant a 90-day moratorium on foreclosures and … more FHA Provides Property Inspection Waiver for Florida and Foreclosure Relief for Georgia Counties

Guidance on California’s “Cooling Off” Period

The California Department of Business Oversight (DBO) recently issued an Interpretative Letter regarding the cooling off period for reverse mortgage application processing as governed under the California Civil Code. In the Interpretative Letter, the DBO provides guidance regarding whether a lender may take a reverse mortgage loan application prior to the expiration of the seven-day … more Guidance on California’s “Cooling Off” Period

HUD Issues FHA Info #17-40 with HECM Updates and Reminders in Advance of Final Rule

According to FHA Info #17-40, on September 18, 2017, the Federal Housing Administration (FHA) will update its FHA systems to accommodate: The implementation of origination and servicing policies contained in the Home Equity Conversion Mortgage (HECM) program final rule that published on January 19, 2017; The servicing implementation guidance issued in Mortgagee Letter 2017-11 on … more HUD Issues FHA Info #17-40 with HECM Updates and Reminders in Advance of Final Rule

Member Alert: FHA Adjusts PLFs and Mortgage Insurance Premiums

Citing its fiduciary responsibility to taxpayers and ensuring that its mortgage insurance programs remain viable and effective in the long term, the Department of Housing and Urban Development today announced changes to principal limit factors and mortgage insurance premiums with the publication of Mortgagee Letter 2017-12. Effective for case numbers assigned on or after October … more Member Alert: FHA Adjusts PLFs and Mortgage Insurance Premiums

New CFPB Issue Brief Questions Social Security Delay Strategy

The Consumer Financial Protection Bureau today published a report evaluating the financial impact of using HECM loan proceeds to bridge the gap in income while delaying Social Security benefits until a later age. The CFPB also released a new video and guide explaining reverse mortgages to consumers. “For consumers whose main asset is their home, taking out a reverse … more New CFPB Issue Brief Questions Social Security Delay Strategy