Massachusetts Lenders Need Approval for Purchase HECM
A Massachusetts Division of Banks spokesman said that state lenders will need prior government approval to originate the home equity conversion mortgages (HECMs) for purchasing homes in Massachusetts.
As per existing law in Massachusetts, lenders offer reverse mortgages approved by the Division of Banks to senior borrowers - the “owner of the real estate”. The Banks Division Spokesman Jason said that the law did not preclude lenders from doling out HECM for Purchase programs. But they will need to amend their existing purchase plans or submit new ones.
The FHA (Federal Housing Authority) made available the HECM for home purchase program since January 1, 2009. But till date no lenders in Massachusetts have submitted an application to provide the reverse mortgage for home purchase program for home buyers.
During 2008, Steven Antonakes, Massachusetts Commissioner of Banks issued cease-and-desist notices to some reverse mortgage lending companies in Massachusetts that were not approved.
