Nov/Dec 2023 RMM

NRMLA Submits Comments to HUD on Second Appraisals On a frequent basis, NRMLA submits comments on behalf of its members to the U.S. Department of Housing and Urban Development (HUD), Consumer Financial Protection Bureau (CFPB) and other federal agencies in response to proposed regulatory changes or when the government seeks private-sector feedback. In July, HUD asked industry stakeholders how it can make its programs easier to access and use. In response, NRMLA submitted comments on August 15 that proposed opportunities for streamlining the process of requiring second appraisals. Based on member feedback, the value of second appraisals tends not to deviate from the first appraisal by more than ten percent in most cases, according to NRMLA. “Given this low rate of discrepancy, exceptions to the second appraisal requirement can be made with minimal risk to the Mutual Mortgage Insurance Fund or HECM borrowers,” NRMLA says. “Exemptions to the second appraisal requirement would also reduce costs to seniors, who typically pay for the second appraisal.” NRMLA, for example, proposed that second appraisals be waived when the appraised property value is more than ten percent greater than the highest possible maximum claim amount for HECMs in a particular year. You can read NRMLA’s comment letter in its entirety at FHA Updates Processes for HECM Borrower Payments If a mortgagee is unable to process payment requests or otherwise fulfill its obligations, the Federal Housing Administration (FHA) has taken steps to be better equipped to step in and assume those responsibilities. On July 11, FHA published Mortgagee Letter 2023-15, which: • Provides additional sources from which FHA can receive notice of a mortgagee’s anticipated or actual default on borrower payments; and • Requires mortgagees to provide FHA with borrower payment information when FHA determines the mortgagee is unable or unwilling to make the required borrower payments. NRMLA submitted comments and recommended certain changes to the draft version of the mortgagee letter when it was posted on the Single-Family Drafting Table, some of which were incorporated into the final version of the mortgagee letter. An important takeaway is FHA once again used its Single-Family Drafting Table to seek industry input before it published a final version of the mortgagee letter. NCOA Resource Guide Helps Older Adults Living Alone Social isolation is a growing problem for older adults, which is why the National Council on Aging (NCOA) published a resource guide over the summer for people who are living alone to empower them to thrive independently and access essential services. “As you age, living alone can present various challenges, including social isolation, limited access to essential services and potential health risks,” NCOA says. “Approximately 27 percent of U.S. adults aged 60 and older were living alone in 2020, according to the Pew Research Center, and this number is projected to increase A Roundup of Issues and News for NRMLA Members By Darryl Hicks Darryl Hicks Hey, Members Hey, Members continued on page 8 REVERSE MORTGAGE / NOVEMBER–DECEMBER 2023 7