Reverse Mortgage Regulations

In response to the email we sent out the other day regarding the forthcoming implementation of the new HECM loan limits, we received a number of questions and forwarded them to HUD.

As NRMLA has previously reported, last week FHA Commissioner Brian Montgomery announced the new single national loan limit for HECMs will be $417,000. We are continually getting more insight into implementation of this change and will report to you as information becomes available.

This morning, FHA Commissioner Brian Montgomery announced that the new HECM nationwide loan limit (maximum claim amount) will be $417,000. The target effective date is November 1.

HUD published Mortgagee Letter 2008-24—Requirements on Mortgage Originators, which clarifies who is eligible to originate HECMs and discusses the cross sell provisions contained in the Housing and Economic Recovery Act of 2008 (HERA).

HUD published a final rule in today's Federal Register that gives existing HECM borrowers in default the ability to pay a reduced MIP if they refinance.

As you know, for years, and with good reason, FHA-insured HECM loans generally have been characterized by the FHA, lenders, consumer advocates alike, as "non-recourse" loans to the borrower.

The following memo provides additional guidance from NRMLA and our General Counsel on Mortgagee Letter 2008-14 dealing with HECM Advisors.

Today, HUD published Mortgagee Letter 2008-14, Home Equity Conversion Mortgage Program - Non FHA Approved Mortgage Brokers, which provides long-awaited guidance on the role of "advisors" in the HECM program.

HUD published Mortgagee Letter 2008-8 today, providing guidance to lenders that wish to offer HECMs with a fixed interest rate.

The U.S. Department of Housing and Urban Development published an “interim” rule in the Federal Register this morning that makes two technical changes to the HECM program.

On October 12, 2007, the FHA issued Mortgagee Letter 2007-12 providing clarification to the previously published rule that lenders may now use LIBOR as an index option with HECM loans. The Mortgagee Letter is effective immediately.

As a service to our members, NRMLA is alerting you to an issue with HECM counseling.

Consumer privacy is a very hot topic—and as marketing people we all must be aware of the consumer’s right to privacy.

Earlier this week, the Federal Financial Institutions Examination Council announced that it recently updated its "Frequently Asked Questions" on Home Mortgage Disclosure Act reporting as to reverse mortgages.