Urban Financial Group spelled changes last week to its policy regarding the non-borrowing spouses of reverse mortgage borrowers, the company said in a notice to broker partners.
The lender said it will allow non-borrowing spouses only under specific circumstances and with certain documentation.
Borrowers with non-borrowing spouses can still qualify under Urban’s guidelines if the non-borrowing spouse has never been on the title to the home, and does not have any community property rights to the residence; or if the non-borrowing spouse does not reside in the property and does not have any community property rights to the property.
If the non-borrowing spouse does not meet those exceptions, Urban will accept certain documentation to qualify those situations including a letter of explanation; non-borrowing spouse certification accessible through software provider ReverseVision; and an attorney letter documenting that the borrowers understand ramifications of the loan for the borrower and non-borrowing spouse, outlined by Urban Financial Group.
The non-borrowing spouse topic has come under discussion by Department of Housing and Urban Development officials as as point of change for reverse mortgage policy, currently being worked on by the Federal Housing Administration. HUD has not stated what the changes regarding non-borrowing spouses will entail, but has stated it is one of several points under attention for upcoming program changes.
Written by Elizabeth Ecker
