FHA Annual Report: Economic Value of HECM Portfolio Improves by $4.3B Thanks to strong home price appreciation, the financial performance of the Home Equity Conversion Mortgage (HECM) portfolio improved in each of the last three years and is now positive for the first time since Fiscal Year (FY) 2015, according to the Department of Housing and Urban Development’s (HUD) 2021 Annual Report to Congress, released on November 15. HUD reports the HECM portfolio has a stand-alone capital ratio of 6.08 percent as of September 30, 2021, compared to a negative 0.78 percent capital ratio from the previous year. Put another way, the economic value of the portfolio improved by $4.3 billion over the past year from a negative $0.5 billion in FY2020 to a positive $3.8 billion in FY2021. “We are very pleased that HUD’s programmatic changes, including Financial Assessment, continue to have the desired effect of improving the fiscal soundness of the HECM program,” said NRMLA President Steve Irwin. Read the report at bit.ly/3J7Vs5B. New York Governor Signs Co-op Bill New York Governor Kathy Hochul signed legislation into law that permits reverse mortgages on cooperative housing for persons aged 62 and older. The bill becomes effective 180 days after it was signed into law on December 1. NRMLA advocated for the passage of the co-op bill. NRMLA met with its retained New York lobbyist and the bill’s sponsors in Albany to ameliorate any concerns People are talking about ... regarding proper consumer protections for co-op owners. NRMLA also worked directly with other stakeholders, including AARP, the Council of New York Co-ops and Condominiums and the National Council of Housing Co-ops, so as to navigate a successful path forward for this legislation. The Federal Housing Administration does not permit Home Equity Conversion Mortgages on co-ops, but the new law paves the way for lenders that offer private-label reverse mortgages in New York to provide products for co-op owners. In-Person Counseling Resumes in Massachusetts Effective December 15, in-person reverse mortgage counseling resumed in Massachusetts. The Massachusetts Division of Banks notified licensees on December 14 that in-person counseling would resume for reverse mortgages “originated from December 15, 2021.” The Division of Banks defined “originated from” as the application date. Massachusetts has historically required all reverse mortgage counseling to be conducted face-to-face. After Governor Charlie Baker declared a state of emergency on March 10, 2020, he subsequently signed a bill into law that allowed reverse mortgage counseling to be conducted in person by synchronous, real-time video conference or by telephone. This change was in effect from April 20, 2020, until the end of the State of Emergency on June 15, 2021. On June 16, Governor Baker signed into law a bill that further extended this provision until December 15, 2021. NRMLA and its Massachusetts members will continue to advocate for a legislative solution to permit counseling by phone, video or in person on a permanent basis. Election of 2021–2022 Board of Directors During NRMLA’s Annual Business Meeting on Tuesday, November 2, the membership approved the 2021 Nominating Committee Report and the election of the following slate of directors to serve on the board of directors for the 2021–2022 term: • Rob Awalt, Allegiant Reverse Services; • Terry Connealy, Mutual of Omaha Mortgage; • Jim Cory, CRMP, Cherry Creek Mortgage; • Laura Cullen, Longbridge Financial LLC; What’s News EVERYTHING NEW YOU EED TO KNOW 8 REVERSE MORTGAGE / MARCH-APR I L 2022
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