HUD Proposes Program Changes

The U.S. Department of Housing and Urban Development will be issuing several mortgagee letters in the near future that make beneficial changes to the FHA reverse mortgage program, according to Meg Burns, Director of HUD's Single Family Program Development Division.

Addressing a luncheon crowd at the fifth annual Reverse Mortgage Day of Texas, held in Austin, on July 26, Burns noted the following program changes that HUD is in the final stages of reviewing:

A mortgagee letter to make counseling a borrower-paid expense disclosed on the HUD-1 form.
A mortgagee letter to extend the principal limit lock period from 60 days to 120 days
A mortgagee letter to eliminate an existing requirement that borrowers present a Photo ID.
HUD has already implemented a new policy whereby the department provides 10 days advance notice of any FHA loan limit increases. This, in turn, gives lenders an opportunity to obtain more funds for their clients.

Both Burns and FHA Commissioner Brian Montgomery are speaking at NRMLA's Annual Meeting & Expo in San Francisco, September 28-30. Attendees will have an opportunity to ask more detailed questions about the HECM program, and other FHA issues. To learn more about the Annual Meeting visit NRMLAOnline.org.