HUD Needs Feedback from Industry Professionals Like You
If you feel overwhelmed with the pace of changes being made to the Home Equity Conversion Mortgage program you’re not alone. Lenders, originators, and servicers have scrambled to keep up not only with the rule changes but to implement them into their business practices. HUD’s latest proposed rules are open for public and industry comment.
Speak now or forever hold your peace.
Although HECM policies development is not a truly democratic process in the purest sense you still can make your voice heard. To date, less than a dozen public comments have been submitted.
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3 Comments
Good advice, Shannon. I think we tend to forget that we are as responsible for the rules and regulations as anyone else. Without our input, we are turning our choices over to others who perhaps are unaware of what we see each week in the lives of our clients. I appreciate your comments.
Some of us have jaundiced eyes when it comes to HUD changing their perspective based on our presenting our opinions. When this was done in regard to the proposed financial assessment, HUD listened to us and made it worse in its final form.
With the Obama Administration winding down and Secretary Castro 1) out campaigning for the Democratic presidential nominee and 2) under consideration for the Vice President nominee slot, is anyone with any real authority really interested in what we have to say? For me, the exercise seems like a waste of time.
HOWEVER, I hope others “with clearer eyes” will invest the needed time to write a well written response. Perhaps, the responses will be heard by those who can and will make changes. For one who is in the throes of jaundice (if there is such a term), I lack confidence my voice will be heard.
HUD’s proposed rule changes in regards to changing the existing cap rate adjustments will have devastating results to the secondary market as investors will be less willing to fund HECM loans because of declining yields. In essence the Dept of HUD will further restrict investors for HECM loans thereby making it even harder for Seniors to have access to this valuable resource.
If HUD is really interested in helping Seniors they should look to allow the LOC option for fixed rate loans. Many seniors avoid the fixed rate option because they can not access their equity in the future on the LOC option that is available on the LIBOR Arm options.