Archive for September 2015

What Can You Expect From a Reverse Mortgage Counseling Session?

Reverse Mortgages are popular borrowing options for older Americans. But before you can start the process of applying for a Home Equity Conversion Mortgage (HECM) loan, the Department of Housing and Urban Development mandates that you attend a reverse mortgage counseling session. What does that mean?
Overview
To get approved for a HECM loan, you must attend [...]

Reverse Mortgage Draw Options – Choose the Line of Credit

The Reverse Mortgage is promoted both as an option that allows seniors to add to their retirement income and as a “loan of last resort” for retirees who must access the equity that they hold in their home in order to meet regular expenses.
The HECM loan was initiated in 1989. Slight revisions have been made to [...]

Changes in Reverse Mortgage Rules Saves Homes for the Surviving Spouses

HUD has again changed its policy regarding the rights of surviving spouses in regards to Reverse Mortgages. Now loan servicers can assign a reverse mortgage loan, in which there is a surviving spouse, back to HUD. The lender can then make a claim for money owed against the FHA insurance fund.
Nation’s Housing
Following the passing of [...]

Where does the HECM Non-Borrowing Spouse Rule Stand Today?

The Department of Housing and Urban Development (HUD) continues to look for ways to deal with Home Equity Conversion Mortgages (HECMs) mortgagees and servicers vis-à-vis non-borrowing spouses.
In an August 24, 2015, letter to the National Reverse Mortgage Lenders Association (NRMLA), HUD followed up on their January 9, 2015 letter by continuing to reject industry requests [...]