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New Policy Gives Some NBS Protections
This monumental policy change comes in the wake of several notable lawsuits brought against the Federal Housing Administration (FHA) and reflects the agency’s desire to close the door on further displacement of younger non-borrowing spouses. Let me begin by saying that this policy is somewhat complex and we will only be covering the primary guidelines of this new policy. The Mortgagee Optional Election or MOE provides lenders with an alternative to foreclosure of the property upon the death of the last surviving borrower provded a number of requirements are met.
First, two choices are presented: proceed with foreclosure in accordance with the HECM contract or utilize the MOE assignment. The deferral period in the Mortgagee Optional Election assignment is the time period following the death of the last suriving borrower…
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