The following section lists the primary regulations pertaining to the FHA’s Home Equity Conversion Mortgage Program, used by compliance, underwriting and servicing staff.
Beginning January 1, 2018, the national lending limit for Home Equity Conversion Mortgages will increase to $679,650 from $636,150. Details were announced today in Mortgagee Letter 2017-17. This new loan limit is also applicable to Freddie Mac’s special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands.
Effective for case numbers assigned on or after January 6, 2018, properties encumbered by a PACE obligation can be paid off using HECM proceeds. “Clarification is provided to identify PACE obligations as Mandatory Obligations that must be paid off at closing, and may be paid off using HECM proceeds,” according to Mortgagee Letter 2017-18. In … more PACE Liens Now Considered a Mandatory Obligation
In comments submitted to the Consumer Financial Protection Bureau, NRMLA requested that the consumer watchdog initiate formal public rulemaking that gives stakeholders the opportunity to adequately address consumer privacy dangers and data protection threats that the disclosure of expanded Home Mortgage Disclosure Act data poses. “We believe that the Bureau should undergo further and formal … more NRMLA to CFPB: Guidance Doesn’t Go Far Enough to Protect Sensitive Data
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The Federal Housing Administration announced in FHA INFO #17-49 that its Electronic Appraisal Delivery Integration and Production environments are scheduled for planned system maintenance and will be unavailable from 12:00 PM (Eastern) on Saturday, November 11, 2017, through 9:00 PM (Eastern) on Sunday, November 12, 2017. Normal operations are expected to resume once system maintenance … more Maintenance Planned For Electronic Appraisal Delivery
In advance of today’s public hearing of the Consumer Financial Protection Bureau’s Consumer Advisory Committee in Tampa, FL, NRMLA submitted comments urging the CFPB to replace the current disclosure regime under Regulation Z and designating reverse mortgages as a separate class of consumer credit transaction with separate, specific disclosures. “NRMLA supports clear, concise, timely, and … more NRMLA Advocates Reverse-Specific Disclosures to CFPB
Financial Assessment is still working. FHA’s new policy of requiring a financial assessment (“FA”) of the borrower’s ability to pay has cut tax and insurance default by nearly three quarters and serious defaults by almost two-thirds. These results continue to validate the encouraging data we shared in previous quarters. FHA’s objective for the new Financial … more Financial Assessment Is Working (Part IV)
The Senate Banking Committee today held a nomination hearing for Brian Montgomery, President Trump’s nominee to be the next Assistant Secretary for Housing/Federal Housing Commissioner. Montgomery served as FHA Commissioner from 2005 to 2009, during President George W. Bush’s second term and the first six months of the Obama Administration. “Now when I’m asked why … more Senate Banking Committee Holds Hearing for FHA Commissioner Nominee
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