Reverse Mortgage Regulations

HUD has published the long-awaited HECM counseling protocol. We've summarized some of the important parts and provided a copy to download. At the bottom of the memo is an update published by FHA that noted some inconsistencies in the protocol.

Jiggles and adjustments are being made to the structure of the HECM program to assure that the FHA insurance fund is revenue neutral and self sustaining for each year’s book of business.

HUD published an advanced notice of proposed rulemaking announcing that it seeks to clarify the prohibition against requiring the use of affiliated settlement service providers in residential mortgage loan transactions under Section 8 of RESPA.

FHA views the reduction of upfront fees being charged by lenders as a positive development that will hopefully continue well into the future, according to remarks made by senior housing specialist Erica Jessup at NRMLA’s Philadelphia Roadshow last week.

HUD published a final rule that will do away with FHA approval of loan correspondents and increase net worth requirements for FHA-approved lending and investing mortgagees.

Following is a list of HECM program contacts at HUD's four regional Home Ownership Centers, and at headquarters.

The Pennsylvania Department of Banking published a statement of policy last week that implements new guidelines for companies under its jurisdiction that originate and service reverse mortgages that includes a suitability standard and determination of mental capacity.

With the exception of California and Minnesota, all states and the District of Columbia have now passed laws implementing new licensing guidelines for mortgage loan originators as mandated by the SAFE Act.

Compliance requirements for reverse mortgages are fast stacking up on lenders as a new set of rules for the product are being embraced by states nationwide.