FHA Delays Reverse Mortgage Financial Assessment Date

The Federal Housing Administration (FHA) just announced that they will delay implementing the reverse mortgage financial assessment guideline that was set to become effective in less than three weeks.  FHA is citing technical difficulties as the reason and expects the new effective date to be within 30 to 60 days of the previous March 2nd target date.  FHA announced on Feb. 12th that they will be publishing a new Mortgagee Letter that will outline the new date at which point the financial assessment will turn mandatory.  Stay tuned and visit www.reversemortgagebenefit.com for more information.

HUD Budget Shows Reverse Mortgage Program Back on Track

The Federal Government believes FHA and the reverse mortgage program have regained some financial footing. The agency is requesting an increase of nearly $4 billion over current funding levels showing their continued support towards the program.  Read more here.

The Future of Retirement Looks Bleak For Many

A new study from HSBC finds that the majority of working age people have major concerns regarding their retirement.  The leading concern is existing mortgage payments and the strain it puts on finances.  The study states that 34% of working age people doubt that they will be able to maintain a comfortable standard of living in retirement and 69% are worried about running out of money.  Paying off a mortgage is one of the key reasons people are not preparing adequately for a comfortable retirement.  Though it was not mentioned, a reverse mortgage can provide the solution in this case.  Read more here.

HUD Says Reverse Mortgages Are a Good Option

The Secretary of the Department of Housing and Urban Development (HUD), Julian Castro, recently stated that the Home Equity Conversion Mortgage (HECM) can provide a boost in retirement for aging Americans in certain situations.  According to Castro, "While the loan doesn't fit for everyone, it can be a good option for those in the right circumstances trying to make it through retirement."  Zillow's Chief Economist, Stan Humphries, also added that a reverse mortgage can help older Americans age in place.  This was all part to an audience question during a fireside chat on January 21, 2015.  Read more here.

Reverse Mortgage Counseling Agencies Receive Funding

The Senate just recently passed a $1.1 trillion spending bill that will make way for housing counseling funding, including reverse mortgage counseling.  The bill did not specify the exact amount that will be allocated to reverse mortgage counseling, however the overall total amount of $47 million allocated to housing counseling is $2 million more than what was allocated for 2014.  This should allow some agencies to offer "free" reverse mortgage counseling services, so homeowners should check with different agencies.  

Reverse Mortgages 2014 In Review

The year 2014 saw many changes for the reverse mortgage industry, which for some is nothing new.  Over the past several years, the industry has gone through its fair share of changes.  Reverse Mortgage Daily compiled its 10 most read articles of 2014 ranging from the exit of Generation Mortgage to the new Non-Borrowing Spouse regulation.  Bring yourself up to speed and click here to read all the stories that impacted reverse mortgages during the year.

Financial Assessment Impact on Reverse Mortgage Lenders

The Department of Housing and Urban Development (HUD) announced last week the implementation of the Financial Assessment for the Home Equity Conversion Mortgage (HECM).  The reverse mortgage industry as a whole welcomes the new guideline to ensure the strength of the program in the long run and added protection for our senior consumers.  The financial assessment is aimed at providing accountability both for borrowers and lenders.  Lenders will be required to closely analyze a borrower's capability to afford and comply with reverse mortgage requirements, such as paying for property taxes and homeowner's insurance.  Some lenders are concerned that loan volume may decrease beginning in March 2, 2015 due to the change keeping some seniors from qualifying.  However, the industry is still working out how the language and criteria of the new rule will affect the lending process, so stay tuned for more information coming soon.