July-Aug 2020

RM Exclusive RM Exclusive continued from page 9 RM: Emergencies often motivate experimentation and actions that prove to be so beneficial to a program that they remain in place once business returns to normal. Are there policy adjustments HUD has made that you are monitoring as possible permanent adjustments? BM: We have had discussions on this very topic. The key thing is that we will look at these policies and maybe we can be a little more open about some of them going for- ward. It’s hard to say at this point what those might be, as we are still dealing with the day-to-day ripple effect of COVID-19. RM: If the foreclosure moratorium is lifted, as currently planned, on May 18, what will the transition look like for HECM borrowers who may still be struggling and for the mortgagees who must assist them? BM: Regardless of what happens, we encourage servicers to continue offering loss mitigation options to help their clients. It’s hard to speculate what we will do. As we get closer to May 18, we will make a determination of the best policy. (Note: Due to the continuing national emergency caused by the COVID-19 pandemic, the FHA extended fore- closure moratorium guidance and the use of exterior-only and desktop appraisal inspections through June 30.) RM: FHA has worked closely with Ginnie Mae to address liquidity challenges that mortgage-backed securities (MBS) and HECM MBS (HMBS) issuers have encoun- tered. Are steps under consideration to help stabilize the HMBS markets? BM: Ginnie Mae, under the leadership of Seth Appleton, has worked heroically over the course of several weeks to offer a new variation of the Pass-Through Assistance (PTA) program that normally would be used after a natu- ral disaster. With the challenges that we have been hearing firsthand regarding servicer liquidity, Ginnie Mae wants to make some changes to the existing PTA program and be able to use that as a last resort funding mechanism should servicers experience liquidity challenges. Ginnie Mae and FHA are committed to sustaining the liquidity of the HMBS market. I know Ginnie Mae continues to look at HMBS issuers and I expect you will hear from Ginnie Mae on this topic soon. RM: Thousands of employees have been forced to work remotely. Some organizations report viewing this as a forced but valuable opportunity to try out new practices. Are you finding this experience informative in an effort to modernize FHA’s operations? BM: Oh yes, we have absolutely found it extremely benefi- cial. In the early days of the pandemic, we were doing beta tests one office at a time in our building. We have 8,500 employees, and we wanted to test whether they could work remotely. We did staggered tests, first with Public and Indian Housing, then Ginnie Mae and others and eventually the Office of Housing. We have a fantastic chief information officer, David Chow. He and his team worked diligently to make sure we have that capability. It’s key for people to know that we didn’t go into this blindly. We determined from day 1 that we could work remotely for almost 100 percent of our employees. Bringing on board the electronic upgrades around the masthead of FHA Catalyst has been very benefi- cial. I can’t begin to tell you how propitious the timing was for that to come online as the virus took hold. RM: Commissioner Montgomery, you have been very generous with your time. Is there a question I haven’t asked that you would like to address, or do you have any parting comments for our readers? BM: Sure. Obviously, we are big believers in the HECM product. It has had some ups and downs the past few years. We have worked closely with the reverse mortgage industry and consumer groups to adjust the product on the origina- tion side, counseling, servicing and claims. We will continue to do that. This COVID-19 pandemic will end. We will resume business as usual at some point. Although I have largely talked about HECM and forward mortgages, just speaking for the rest of HUD—whether it’s rental or subsi- dized housing, community development, public housing— we support a lot of families and seniors. Our commitment is across all of those programs. All are getting an equal amount of focus and attention. It’s important for your readers to know that we’re focused on helping millions of people who need our assistance, especially vulnerable populations, such as our seniors. 10 REVERSE MORTGAGE / JULY-AUGUST 2020