Reverse Mortgage Program Seen as Strong
The perceived strength of the Home Equity Conversion Mortgage will be a major topic of discussion at the 2012 National Reverse Mortgage Lenders Association (NRMLA) meeting in March. The NRMLA Eastern Regional Meeting will focus on recent developments in the reverse mortgage market including a review of the Department of Housing and Urban Development (HUD) outlook which confirms that the HECM program’s guidelines will remain stable through 2013.
This announcement is a stabilizing factor for the Reverse Mortgage market which continues to provide one of the most attractive loan alternatives for senior citizens aged 62 and over. Under the terms of the HECM mortgage, retired individuals may apply for a HECM mortgage which is insured by the Federal Housing Authority (FHA). This mortgage allows the borrower(s) to draw money against the home’s equity. When the borrower(s) no longer live in the home, the home reverts to the lending institution which can then recoup the money that was paid to the borrower by selling the house.
The NRMLA represents HECM lending institutions. The organization provides FHA-approved lenders with updates, resources and professional data about the reverse mortgage industry. The Association also serves as a public affairs center and policy advocate for the Reverse Mortgage trade and works to enhance the professionalism of the Reverse Mortgage industry and its staff. The organization offers training to help lenders work with the senior population and advises policy makers on issues pertaining to Reverse Mortgages. NRMLA members agree to abide by the NRMLA Code of Ethics and Professional Responsibility.
The upcoming NRMLA meeting will concentrate on other trends which affect the Reverse Mortgage market including the new HECM Saver and HECM for Purchase programs which have proven to be successful additions to the HECM program.
Other updates that will be discussed at the NRMLA meeting include the updated guidelines involving counseling sessions for Reverse Mortgage borrowers and resources available to these counselors. In 2011 the Federal Housing Administration advised HECM lenders and borrowers that regulations regarding mandated counseling for HECM borrowers as part of the application process were being revised. The new requirement mandates that all property owners listed on the deed of the home must be included in the counseling, not just the borrower. During these counseling sessions the counselor meets with the applicant along with any other individuals who are signed on the home’s deed to explain the loan’s guidelines, as well as the borrower’s obligations to pay the loan’s interest and closing fees. Counselors also discuss borrowers’ responsibilities to continue to pay for the home’s maintenance and property taxes.
The NRMLA Spring Conference will take place Monday through Thursday, March 26-27, 2012 at the Grand Hyatt New York.
