Reverse Mortgage magazine Nov-Dec 2020

To view a more extensive list of changes, please visit www.nrmlaonline.org/2020/07/29/important- updates-to-new-york-reverse-mortgage-regulations. The press is talking about ... CNBC.com Reporter Offers Guidance CNBC.com financial reporter Jill Cornfield explains how reverse mortgages may be helpful in retirement, but it’s important for consumers and their families to under- stand the pros and cons. When considering a reverse mort- gage, people should ask themselves if the house will work for them the rest of their lives, says Carolyn McClanahan, a physician and certified financial planner, in Cornfield’s story. McClanahan is founder and director of financial planning at Life Planning Partners in Jacksonville, FL. Scout other possibilities, she advises in the article, such as selling the house so you can use the money for a less-ex- pensive property or to rent. “With a reverse mortgage, you have to be sure you can afford your home forever,” McClanahan says. Bankrate.com Explains How to Modify Homes with a Reverse Mortgage An article by Jeanne Lee that appeared on Bankrate.com explains how reverse mortgages can be used to help home- owners make the necessary modifications they need to con- tinue living in their homes as they age. Lee writes that the best aging in place home modifica- tions align with “universal design,” an architectural term for features that are easy for all to use and adaptable as needs dictate. This includes additions and changes to the exterior and interior of a home. There are a number of ways to pay for home modifications, she adds. One option is a home improvement loan, either a home equity line of credit (HELOC), home equity loan or per- sonal loan. Other alternatives include a reverse mortgage or seeking assistance from a state housing finance agency. “If you’re 62 or older and own your home,” says Lee, “you may be eligible for a reverse mortgage, which converts a portion of your equity to cash while allowing you to continue living in the home. One of the most common kinds is a home equity conversion mortgage.” In Washington, they’re talking about ... HUD Delays Housing Counselor Certification Deadline The U.S. Department of Housing and Urban Development (HUD) published an Interim Final Rule that extended to August 1, 2021, the deadline for hous- ing counselors to pass the certification examination and remain on the Federal Housing Administration (FHA) counseling roster. “As of today, only 64 percent of the 1,090 housing counseling agencies have HUD-certified housing counsel- ors,” says Jennifer Cosentini, housing director at Cambridge Credit Counseling in Agawam, MA. “It was imperative for HUD to take action and postpone the final compliance date. Had they not, we would be seeing many agencies go out of business and losing counselors at an extremely criti- cal time in the housing industry.” The Dodd Frank Act of 2010 requires all housing counselors, including reverse mortgage counselors, to pass a certification exam in order to be on the FHA roster. HECM counselors must also pass a reverse mortgage-spe- cific exam every three years. HUD noted in its interim rule that as of July 6, 60 percent of the testing centers remained closed because of The Biz continued on page 10 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2020 9