The following section lists the primary regulations pertaining to the FHA’s Home Equity Conversion Mortgage Program, used by compliance, underwriting and servicing staff.
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
This list represents the agencies currently known to provide HECM default counseling and may not be all inclusive. Greenpath (888) 860-4167 Money Management International (866) 765-3328 National Foundation for Credit Counseling (866) 363-2227 NeighborWorks America (888) 990-4326 Housing Option Provided for the Elderly (773) 262-7801 The next time one of your past clients calls you … more Helping Your Clients Who Are In Default
The HOPE NOW Alliance and ClearPoint Credit Counseling Solutions are collaborating on a one-year pilot program that assists homeowners in California who have reverse mortgage issues, concerns and questions. Five public events are being organized, beginning in March, and lasting throughout the year. “The goal is to create face-to-face interactive events where participants can gain … more New Collaboration Focuses on CA Borrowers
The Department of Housing and Urban Development reminded housing counselors this week that the Reverse Mortgage Analyst (RMA) software has a new feature that allows them to create and track client responses to the required questions asked during counseling sessions. Based on current usage reports, HUD said only 11% of counseling agencies have utilized the … more HUD Reminds Counselors of New Software Tracking Feature
NRMLA was recently made aware that the North Carolina Commissioner of Banks posted an FAQ on its website indicating that telephone counseling is permissible under the state’s Reverse Mortgage Act. The FAQ states: Q. Is telephone counseling permissible under the reverse mortgage act? A: Yes. Although HUD Guidelines recommend face-to-face meetings with potential reverse mortgage … more Telephone Counseling Permitted in North Carolina
The most important consumer protection built into the reverse mortgage program is the requirement that a prospective borrower must first meet with an exam-qualified, independent third-party counselor approved by the U.S. Department of Housing and Urban Development (HUD) before signing a loan application or incurring any fees. No other consumer product requires this same protection. For … more Complying with FHA’s HECM Counseling Guidelines: Frequently Asked Questions
HUD has published the long-awaited HECM counseling protocol. We’ve summarized some of the important parts and provided a copy to download. At the bottom of the memo is an update published by FHA that noted some inconsistencies in the protocol.
In a memo to counseling agencies, the Department of Housing and Urban Development clarified that there is no cap or maximum amount that can be charged for HECM counseling. As stated in Mortgagee Letter 2011-09, a fee of $125.00 is neither a maximum nor a minimum allowable charge. HUD published the memo on June 2, … more HUD Reiterates Policies on HECM Counseling Fees
Massachusetts’ Division of Banks confirmed with NRMLA’s outside legal counsel that those seniors who received counseling on or before July 31, do not have to be re-counseled in-person.