HUD

HUD has published the long-awaited HECM counseling protocol. We've summarized some of the important parts and provided a copy to download. At the bottom of the memo is an update published by FHA that noted some inconsistencies in the protocol.

Jiggles and adjustments are being made to the structure of the HECM program to assure that the FHA insurance fund is revenue neutral and self sustaining for each year’s book of business.

HUD published an advanced notice of proposed rulemaking announcing that it seeks to clarify the prohibition against requiring the use of affiliated settlement service providers in residential mortgage loan transactions under Section 8 of RESPA.

Companies not already approved as FHA correspondents on or before May 20 will have to wait until late September to get approval from their FHA approved lending mortgagee sponsor(s) in order to originate loans as non-FHA approved “third-party originators.”

FHA views the reduction of upfront fees being charged by lenders as a positive development that will hopefully continue well into the future, according to remarks made by senior housing specialist Erica Jessup at NRMLA’s Philadelphia Roadshow last week.

HUD published a final rule that will do away with FHA approval of loan correspondents and increase net worth requirements for FHA-approved lending and investing mortgagees.

FHA announced in Mortgagee Letter 2010-14 that it will accept electronic signatures on third-party documents submitted in case binders for all FHA forward mortgages and HECMs effective immediately.

The U.S. Department of Housing and Urban Development acknowledged last week that it is taking three to five business days for staff to respond to questions submitted through its Condo Project Approval Inquiries mailbox.

Following is a list of FHA Mortgagee Letters that govern the HECM program.

Following is a list of HECM program contacts at HUD's four regional Home Ownership Centers, and at headquarters.

The Department of Housing and Urban Development will soon require consumers to divulge why they are obtaining a Home Equity Conversion Mortgage and for lenders to disclose the interest rate margin being charged on the loan.

On February 15, FHA lenders and brokers will be playing by a new set of rules when ordering appraisals.

On Wednesday, December 30, NRMLA submitted comments to HUD in response to the Proposed Rule eliminating FHA approval of correspondents, increasing net worth requirements for lenders and shifting responsibility for overseeing brokers to lenders.

Below is a summary prepared by NRMLA's legal counsel James Milano of Weiner, Brodsky, Sidman, Kider, P.C., detailing several important legal changes that will become effective either on January 1, 2010 or early in 2010.

The U.S. Department of Housing and Urban Development published Mortgagee Letters 2009-46a and 2009-46b, which further clarify the process lenders must use to approve new condominium projects.

The Department of Housing and Urban Development published a proposed rule today that increases capital requirements for lenders and dramatically alters the process by which brokers are approved to originate Federal Housing Administration insured loans.

The Federal Housing Administration today published Mortgagee Letter 2009-50, which implements the continuing resolution recently passed by Congress that kept loan limits for Home Equity Conversion Mortgages at $625,500 through December 31, 2010.

On October 22, 2009, HUD issued more FAQs for the Real Estate Settlement and Procedures Act (RESPA). These FAQs address what NRMLA’s RESPA Committee determined were four main issues with regard to RESPA’s effect on reverse mortgage transactions.

This morning, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-47, which implements a final rule published in September that established the HECM Counselor Roster and testing standards that will be used to qualify new HECM counselors.

Last week, HUD published a Q&A pertaining to the impact of reverse mortgages in the new RESPA guidelines due out right after the New Year.

On November 18, 2008, HUD issued final amendments making numerous and significant changes to Real Estate Settlement Procedures Act (RESPA) rules.

The U.S. Department of Housing and Urban Development today published a final rule implementing its HECM Counseling Roster and testing standards that will be used to qualify new counselors.

About 20 years ago, Edward J. Szymanoski was asked to join a small team within the Department of Housing and Urban Development to build something that hadn't been built before: a financial model for a government product that came to be known as the Home Equity Conversion Mortgage

With the $625,500 loan limit still in effect for the balance of 2009, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-21 to clarify existing guidelines in anticipation that a certain percentage of borrowers will refinance their reverse mortgages.

The Department of Housing and Urban Development published Mortgagee Letter 2009-19 today, which implements new approval guidelines for condominium projects to qualify for FHA insured mortgages under Section 203(b) of the National Housing Act.

The following section lists the primary regulations pertaining to the FHA's Home Equity Conversion Mortgage Program, used by compliance, underwriting and servicing staff.

As a quick industry reminder, FHA HECM appraisals should not be ordered for HECM loans until an FHA case number is assigned.

The Department of Housing and Urban Development yesterday published Mortgagee Letters 2009-10 and 2009-11 (Attachment) to clarify its policies on counseling and the new HECM for Purchase program.

We want to alert NRMLA members of concerns raised regarding the offering of a true HECM for purchase loan program in Texas.

The NRMLA/HUD Working Group met today to discuss Mortgagee Letter 2009-07 and other important HECM issues.

The U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-07, which officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the balance of 2009.

NRMLA's Compliance Committee developed the following best practices pertaining to property valuation practices, HECM expected rate/principal limit loan lock practices, and HECM refinance practices.

HUD published a new mortgagee letter which imposes new requirements on appraisers who want to remain on the official FHA Appraiser Roster.

HUD published Mortgagee Letter 2008-38, which clarifies the definition of non-recourse and defines an “arms-length” transaction when the property is sold.

HUD created special Q&A pages for lenders to obtain additional information about HECM for Purchase and the new lending limits.

The following memo provides updates based on discussions at yesterday’s meeting of our NRMLA/HUD Work Group and a committee that is developing recommendations for implementation of the McCaskill amendments on cross selling of financial products with reverse mortgages.

HUD published Mortgagee Letter 2008-24—Requirements on Mortgage Originators, which clarifies who is eligible to originate HECMs and discusses the cross sell provisions contained in the Housing and Economic Recovery Act of 2008 (HERA).

HUD published a final rule in today's Federal Register that gives existing HECM borrowers in default the ability to pay a reduced MIP if they refinance.

As you know, for years, and with good reason, FHA-insured HECM loans generally have been characterized by the FHA, lenders, consumer advocates alike, as "non-recourse" loans to the borrower.

HUD published Mortgagee Letter 2008-8 today, providing guidance to lenders that wish to offer HECMs with a fixed interest rate.

The U.S. Department of Housing and Urban Development published an “interim” rule in the Federal Register this morning that makes two technical changes to the HECM program.

On October 12, 2007, the FHA issued Mortgagee Letter 2007-12 providing clarification to the previously published rule that lenders may now use LIBOR as an index option with HECM loans. The Mortgagee Letter is effective immediately.

As a service to our members, NRMLA is alerting you to an issue with HECM counseling.

Today, FHA published Mortgagee Letter 2007-08, “HECM Face-to-Face Interviews,” which makes a significant change to the HECM program.

Today, the U.S. Department of Housing and Urban Development published a proposed rule in the Federal Register seeking public comment on the adoption of new testing standards to approve individuals as HECM counselors and a national counseling roster.