Archive for October 2013

New Changes Strengthen HECM

Industry analysts see the recent changes to the Home Equity Conversion Mortgage (HECM) program as a move that will strengthen the loan while simultaneously taking some of the risks out of the program. These lowered risks affect the Federal government which insures the loan, lending institutions which administer the loan and the borrowers themselves.
In [...]

New Challenges for the Reverse Mortgage Industry

On September 30 2013 changes to the federally-guaranteed Home Equity Conversion Mortgage were implemented, changing the product and the type of person who will be using it.
Lending institutions, on the whole, were supportive of the changes, which require that senior citizens undergo background credit checks to ascertain their ability to maintain their loan obligations and [...]

Reverse Mortgage Protection for Borrowers’ Spouses

Senior advocates, the legal community, the Reverse Mortgage industry, the government and retirees have been carefully monitoring a recent court case that set the AARP against the United States Department of Housing and Urban Development.
According to the Reverse Mortgage regulations a Reverse Mortgage can be taken out on the name of one homeowner, even if [...]

New Reverse Mortgage Stability Act — What does it Mean?

The new Reverse Mortgage Stability Act was signed into law in August and implementation of the law was effected this week. The Reverse Mortgage Stability Act set the stage for Department of Housing and Urban Development to tighten and streamline the HECM loan. HUD mortgagee letters 2013-27 and  2013-28 laid out the changes which have now [...]