Category Archives: Reverse Mortgage

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HUD Proposes Mandatory Assignment of HECMs

As part of a broader push to update its regulations regarding Home Equity Conversion Mortgages (HECMs, more commonly known as reverse mortgages), the Department of Housing and Urban Development (HUD) published a Supplemental Notice of Proposed Rulemaking on August 11, 2016. HUD is seeking comments on a regulatory change that would require mortgagees to assign HECMs … Continue Reading

FHA Issues Proposed Rules Related to Home Equity Conversion Mortgages

Last week, the Federal Housing Administration (FHA) released for notice and comment a set of proposed rules affecting Home Equity Conversion Mortgages (HECM), more commonly known as reverse mortgages. Below are highlights of the major changes. On the origination side, the proposed rules revise the definitions of expected average mortgage interest rate and Initial Disbursement … Continue Reading

HUD Reverses Course (Again) on Non-Borrowing Spouses

The Department of Housing and Urban Development (HUD) continues to grapple with how mortgagees and servicers of Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, should proceed where a spouse that is not a party to the loan agreement or mortgage (a “Non-Borrowing Spouse”) survives a recently deceased borrower. In an August 24, … Continue Reading

CFPB Releases New Reverse Mortgage Study Raising Marketing Practice Concerns

A recent study released by the Consumer Finance Protection Bureau (CFPB) regarding reverse mortgages suggests the CFPB is looking closely at the industry and the study may well be an omen of enhanced future enforcement activities. For consumers, the CFPB’s study cautions retirement-age individuals to review carefully as much information as they need to ensure … Continue Reading
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