[vimeo id=”111876180″ width=”625″ height=”352″]
FHA Releases New Guidelines for HECM Financial Assessment
The long anticipated, or dreaded depending on your viewpoint, Financial Assessment was announced last week by HUD at the annual National Reverse Mortgage Lenders Association conference in Florida. The new guidelines will go into effect March 2nd, 2015. In fact we will be hosting a free national webinar training session today at 11am Pacific or 2pm Eastern. Just click the banner below to register and join us today. The FA or Financial Assessment will measure both the borrower’s willingness and capacity (or ability) to meet their financial and HECM obligations. The agency’s introductory comments reveal the motive behind this new protocol. “In conducting this financial assessment, mortgagees must take into consideration that some mortgagors seek a HECM due to financial difficulties, which may be reflected in the mortgagor’s credit report and/or property charge history. The mortgagee must also consider to what extent the proceeds of the HECM could provide a solution to any such financial difficulties.” In other words HUD & FHA are seeking to move the product away from those would use a HECM as a stop gap measure to long lasting financial issues which may resurface in the future…
Download a transcript of this episode here.
Download the HECM Financial Assessment and Property Charge Guide.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.