HUD Eliminates Reverse Mortgage HECM Advisor Program

imageToday FHA Commissioner Brian Montgomery conducted a telephone briefing on the FHA Modernization legislation and he announced that HUD will be eliminating the HECM Advisor program.  According to NRMLA, HUD will be issuing a Mortgagee Letter within the next 30 days because the new law requires that, “All parties that participate in the origination of a mortgage to be insured under this section shall be approved by the Secretary”.  Once the letter is issued and takes effect, only employees of FHA-approved lenders and correspondents will be permitted to participate in the origination of HECMs.

Also, HUD lawyers still haven’t resolved whether the bill creates a single national loan limit at $417,000 or $625,500, or area limits at 115% of area median home value, with a floor of of $417,000 and a cap of $625,500.  NRMLA expects to get a final decision from lawyers within the next couple of days.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please