A federal court rejected the Obama administration’s interpretation of how reverse mortgages should be handled after a spouse dies. The Wall Street Journal says HUD's interpretation led some homeowners to face the risk of foreclosure after their spouses had passed away. Per the WSJ:
AARP filed suit two years ago to challenge the Department of Housing and Urban Development, which oversees the program. The seniors' organization said HUD had violated federal law by requiring surviving spouses who weren't on the mortgage to pay off the loan in full or face foreclosure.
"The message was loud and clear. This reverse-mortgage statue is supposed to protect spouses from foreclosure," said Craig Briskin, a lawyer with Mehri & Skalet PLLC in Washington, who had represented the plaintiffs.Sponsor Content