Sept./Oct. 2023 RMM

payment of funds to mortgagees when they assign a HECM to the U.S. Department of Housing and Urban Development. ML 2023-10: • Lowers the minimum loan balance required to submit an assignment claim for review from 97.5 percent of the maximum claim amount to 97 percent; • Allows for mortgagees to submit original notes and mortgages no later than 90 days after the assignment claim payment date; • Extends the time frame for delivery of assignments of the mortgage to the Secretary from six months to 12 months for HECMs with FHA case numbers assigned before September 19, 2017; and • Modifies the supporting documentation that mortgagees must submit to be eligible for preliminary title approval. “This is huge news,” NRMLA President Steve Irwin says. “We greatly appreciate the steps taken by FHA to make the assignment process for HECM reverse mortgages more efficient and to further reduce liquidity risk to mortgagees.” Commentary: Financial Assessment Is Still Working New View Advisors published a commentary in midMay highlighting that the financial assessment (FA) continues to dramatically reduce tax and insurance (T&I) defaults among HECM borrowers. “Now in its ninth year, FHA’s (Federal Housing Administration’s) policy of requiring the financial assessment of borrowers’ ability to pay has helped cut tax and insurance defaults by over 80 percent and serious default by over 75 percent,” according to the commentary. As of March 31, 2015, the pre-FA data set had a T&I default rate of 7.1 percent and an overall serious default rate of 10.5 percent. As of March 31, 2023, the post-FA data set shows a T&I default rate of approximately 0.9 percent, and an overall serious default rate of 2.3 percent, according to New View Advisors. Read the full commentary at Submit Your Questions or Comments I’d also like to use this column to respond to questions you may have about NRMLA, the CRMP designation or anything that’s on your mind. Send your questions or comments to • 855.552.8020 GET AHEAD OF THE STORM. INTRODUCING CLADE™ PRE- AND POST- DISASTER ASSET MANAGEMENT. The CLADE Disaster Alert System enables servicers to take proactive measures to protect at-risk properties before a disaster strikes, and to streamline the inspection, debris removal, and claims processes, post-disaster. CLADE PROVIDES: Advanced Geo-Tagged Asset Locations Real-Time Disaster Occurrence Notification Layered Mapping for Disaster Zone Identification Exportable Property Lists for Asset-Specific Analysis One-Click Access to Field-Service Orders Learn more about how CLADE can help protect the value of your default and REO assets at today. REVERSE MORTGAGE / SEPTEMBER–OCTOBER 2023 9