Tag Archives: Home Equity Conversion Mortgages

The Federal Housing Administration has once again extended the deadline to give servicers more time to pursue loss mitigation options.

In a recent audit of HUD's oversight of the Department's Home Equity Conversion Mortgage (HECM, or reverse mortgage) program, HUD's Office of the Inspector General (OIG) found that HUD's policies did not always ensure that borrowers complied with residency requirements, according to a release from the HUD OIG.

On Friday, HUD amended its HECM policy again, this time to include reverse mortgages originated prior to August 4, 2014, giving borrowers expanded options to allow the non-borrowing spouse to remain in the home if the reverse mortgage was originated before that date.

The U.S. Department of Housing and Urban Development (HUD) has issued a memo announcing the rescinding of a mortgagee letter written in January that would have allowed reverse mortgage lenders the option of delaying foreclosure proceedings on surviving non-borrowing spouses.

The Federal Housing Administration (FHA) responded in the Federal Register on Wednesday to comments on the alternative path to claim payment (the Mortgagee Optional Election Assignment) for certain Home Equity Conversion Mortgages (HECMs), which centers on the delaying of foreclosure on a non-borrowing spouse following a borrowing spouse's death.