Procedural change will allow HUD to be more responsive to changes necessary to keep HECM reverse mortgage program healthy, passed by unanimous consent in the House today. The changes that FHA is considering to improve the health and performance of the HECM program and Mutual Mortgage Insurance Fund – including draw limitations, mandatory escrows and financial assessments – require rulemaking, which is generally a two-year process. H.R. 2167 would allow FHA to implement these changes more quickly by mortgagee letter. A similar bill is working its way through the Senate. The HECM Reverse Mortgage program remains an important financial tool and these changes will help ensure a long term viability of the program. Good news!
June 12, 2013