NRMLA Submits Comments To HUD NRMLA submitted two sets of comments to the Department of Housing and Urban Development (HUD) during the last week of January, one that seeks changes to loan level servicing reviews in the Federal Housing Administration’s (FHA) Defect Taxonomy and the other highlighting important issues related to updating the draft HECM Handbook. In the first letter, NRMLA urged FHA to specifically recognize, and incorporate, the curtailment of property preservation expenses and the loss of debenture interest as a remedy and category of financial remediation within the Defect Taxonomy. With regard to the HECM Handbook, NRMLA compiled more than 180 comments that were documented in an Excel spreadsheet and submitted through the Department’s Drafting Table, along with a cover letter that focused on several items the association’s committees felt were important. Members can view both sets of comments by logging in to www.nrmlaonline.org. Senior Home Equity Exceeds Record $10.1 Trillion Homeowners 62 and older saw their housing wealth grow by four percent, or $396 billion, in the third quarter to a record $10.19 trillion from Q2 2021, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI). The RMMI rose in Q3 2021 to 356.37, another all-time high since the index was first published in 2000. The increase in older homeowners’ wealth was mainly driven by an estimated 3.7 percent, or $440 billion, increase in home values, offset by a 2.2 percent, or $44 billion, increase in senior-held mortgage debt. “Survey after survey has shown that one of our biggest fears is running out of money in retirement and having to subsist solely on Social Security,” says Steve Irwin, NRMLA president. “That’s why housing wealth should be considered with other financial assets when developing a comprehensive retirement plan.” Presidential Proclamation Could Help Troubled HECM Borrowers President Joe Biden issued a proclamation that extends the COVID-19 national emergency one year from Feb. 18, unless otherwise terminated before that date. The national emergency, which was first declared on March 13, 2020, and has been extended at various times over the past two years, was set to expire on March 1, 2022. In a joint statement, Servicing Committee Co-Chair Gail Balettie, senior vice president, client satisfaction at Celink, and Leslie Flynne, director, PHHMortgage Services, said: “The guidance that HUD provided via ML 2021-24, coupled with this continuation of the presidentially declared national emergency, continues to allow HECM servicers to assist senior reverse mortgage borrowers who have been impacted by the COVID-19 pandemic. Servicers have been working closely with state administrators of Treasury’s Homeowner Assistance Fund (HAF) program. We anxiously await the opening of application portals for all states so that our impacted seniors can have the opportunity to apply for HAF funds. Reverse mortgage servicers are committed to working with our senior borrowers to avoid foreclosures.” In addition to the proclamation, the Federal Housing Administration published a technical update to Mortgagee Letter 2021-15 that will provide additional time for borrowers economically impacted by the COVID-19 pandemic to seek relief. Details were provided in Mortgagee Letter 2022-02, which was published on February 7. People are talking about ... What’s News EVERYTHING NEW YOU NEED TO KNOW 8 REVERSE MORTGAGE / MAY- JUNE 2022
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