After finally launching in October following months of development and several delays in implementation, the Home Equity Reverse Mortgage Information Technology (HERMIT) system commissioned by the Federal Housing Administration has delayed its grace period for industry adoption.
FHA, which rolled the technology out in October 2012 after several postponed release dates, has extended the current 6-month grace period by two months, through June 9, 2013, the agency has confirmed.
The original cutoff was six months from the initial implementation date, falling on April 9.
The goal of the new system is to improve the processes associated with reverse mortgage endorsement, servicing and claim processing within the Department of Housing and Urban Development. The housing agency contracted with Reverse Mortgage Solutions, which partnered with QSSI on creating a service provider platform, for its development.
Industry reports have indicated the adoption process has been slow, with some lenders experiencing a delay in loan endorsements due to the new process.
Written by Elizabeth Ecker
