Podcast E638: Time to Move Out of MMI Fund

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New FHA Commissioner calls  to remove HECM from FHA MMI Fund

The HECM likely needs to be removed from FHA’s Mutual Mortgage Insurance Fund to stop traditional mortgage borrowers from subsidizing losses.

Other Stories:

  • The DOJ files complaint against lender for decade-old HECMS

  • New waivers give non-borrowing-spouses a reprieve 

reverse mortgage podcast

reverse mortgage podcast

Reforms Sought for Non-Borrowing Spouses

ePath 100K RM leads

NRMLA Submits Requests to Reform NBS Policies

reverse mortgage newsThere may be a window of opportunity in the wake of President Trump’s call to overhaul regulations for financial institutions and housing agencies. The National Reverse Mortgage Lenders Association (NRMLA) submitted several requests to HUD to update and refine the non-borrowing spouse provisions of the Home Equity Conversion Mortgage, and improve the rules for HECM purchase transactions. An opportune moment indeed as HUD has asked for inputs to identify regulations that impose an undue burden.

The addition of non-borrowing spouse protections was a welcomed change that provided protection for the spouses of HECM borrowers not named on the loan and removed a thorn in the side of the HECM industry that buoyed claims of reverse mortgages unfairly punishing widows and widowers in their most painful and vulnerable hours. While several tweaks have been made in recent years, NRMLA has asked for improvements addressing conflicting language in HECM loan documents and provide protection to non-borrowing spouses.

While getting a reverse mortgage is complex, unwinding the loan can be even more complicated for surviving non-borrowing spouses, heirs and services