Reverse Mortgage magazine Nov-Dec 2020

COVID-19 restrictions. While counselors can take the exam online, this may require purchasing additional equipment, which may not be possible for many housing counselors. NRMLA Requests Federal Funds Be Released to Help Puerto Rico HECM Borrowers NRMLA submitted a letter to Puerto Rico Housing Secretary Luis C. Fernández-Trinchet requesting that $5 million in federal Community Development Block Grant funds be released to help HECM borrowers who are delin- quent on paying their property taxes and insurance. Following Hurricanes Irma and Maria in 2017, the Puerto Rican government established a Disaster Recovery Action Plan, so that CDBG funds could be used to help homeowners impacted by the storms avoid foreclosure. “Although the amount of the allocation may seem small within the broader spectrum of the CDBG-DR pro- gram, such an allocation will benefit thousands of elderly individuals who have limited or no income, and who may be facing a dire situation due to their inability to cover basic tax and insurance payments and may consequently end losing their homes,” NRMLA says in the letter. Additionally, NRMLA says it is available to assist the Puerto Rico Department of Housing (PRDOH) in the outreach and intake of the individuals who may benefit from the proposed program, as well as to coordinate with the PRDOH in how to set up and manage the program. NRMLA is also prepared to provide statistics and non-sen- sitive information about the population of homeowners who would benefit from this proposed program, and who would eventually retain their homes. Read the full letter at https://www.nrmlaonline.org/nrmla-comment-letters. DC Passes Law to Help Delinquent Reverse Mortgage Borrowers The District of Columbia implemented a new law that extends and slightly expands the existing DC reverse mort- gage tax and insurance payment assistance program. The “Reverse Mortgage Insurance and Tax Payment ProgramTemporary Amendment Act of 2020” extends the District of Columbia Housing Finance Agency’s Reverse Mortgage Insurance and Tax Payment Program so that it runs for 24 months, subject to available funds. Additionally, the new law amends the program so that it provides financial assistance for payment of condo- minium fees and homeowners association fees to qualified homeowners, in addition to property taxes and property insurance debts. Studies Show Gains in Retirement Plans Retirement plans made gains in 2019, and although they’ve been challenged by a pandemic and sudden eco- nomic downturn, they show surprising resiliency, according to an article published by the American Society of Pension Professionals and Actuaries that cited two recent studies. Retirement plans had a good year in 2019 from a variety of perspectives, T. Rowe Price points out in its “Reference Point Annual Benchmarking Report.” And despite the many serious challenges facing them, there is even some good news for retirement plans in 2020, says investment advisory firm NEPC in its July 2020 Defined Contribution Flash Poll. T. Rowe Price says that in 2019, average account bal- ances rose to over $100,000, an increase of eight percent. And NEPC reports that despite the hardships of 2020, more than 90 percent of plan sponsors say that less than five percent of Americans made early withdrawals even though the CARES Act allows it. The Biz continued from page 10 LET US KNOW WHAT YOU’RE TALKING ABOUT. This forum is the place for readers to share their opinions with fellow colleagues about the direction of the reverse mortgage business and other retirement trends. Submissions should be limited to 100 words or less and submitted to NRMLA Vice President of Communications Darryl Hicks at dhicks@dworbell.com. 10 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2020