Reverse Mortgage Jan-Feb 2021

HUD OFFICIALS EXPECT that 2021 should run smoothly because of lessons learned during the pandemic, partially because long-planned technology improvements were implemented at the height of the crisis. Joseph M. Gormley, U.S Department of Housing and Urban Development (HUD) Deputy Assistant Secretary for Single-Family Housing, says the depart- ment kept the market for Federal Housing Administration (FHA)- insured loans running smoothly during the turmoil, while help- ing borrowers in the process. Homeowners on both the forward and reverse sides of the mortgage industry were protected by various initiatives, including a foreclosure and eviction morato- rium for all homeowners with FHA-insured mortgages. The moratorium, consistent with the Coronavirus Aid, Relief and Economic Security (CARES) Act, was in place through December 31, with some observers push- ing for an extension in future relief proposals. “FHA had to quickly make changes to its policies and priorities to deal with this new reality,” says Gormley, whose comments came during NRMLA’s 2020 Virtual Annual Meeting. “These updates were designed to bal- ance the burdens on homeowners and servicers but also to ensure that risks to FHA continued to be mitigated.” On April 1, 2020, a six-month mortgage payment forbearance, extendable for up to 12 months, was insti- tuted for FHA-insured mortgage holders who requested the assistance from their servicers. Other efforts included instituting loss-mitigation home retention options to assist homeowners—post-forbearance—to bring their payments current and avoid future foreclosure. And tem- porary waivers were put in place to multiple policies that require lenders, servicers, appraisers and other program Reports From HUD Officials Outline HECM Program Changes By Mark Olshaker Reports From HUD continued on page 28 Joseph Gormley REVERSE MORTGAGE / JANUARY-FEBRUARY 2021 27