HUD Invites Comment on Non-Borrowing Spouse Letter

5 May

As a follow-up to our last post, HUD has requested that interested parties comment on the new requirements.  Here is their summary:

On April 25, 2014, the Federal Housing Administration (FHA) issued Mortgagee Letter 2014-07, announcing the amendment to HECM program regulations and requirements concerning due and payable status where there is a Non-Borrowing Spouse at the time of loan closing, consistent with the authority to make such changes by the Reverse Mortgage Stabilization Act, signed into law on August 9, 2013. The new HECM requirements are necessary in order to ensure the financial viability of the HECM program and the Mutual Mortgage Insurance Fund (Fund), and to comply with the statutory requirement concerning the Secretary’s fiduciary duty to the Fund. The new HECM requirements will take effect for case numbers assigned on or after August 4, 2014. This notice solicits comment for a period of 30 days on the new requirements announced in Mortgagee Letter 2014-07.”

The entire notice from the Office of the Federal Register can be seen here:

https://www.federalregister.gov/articles/2014/05/02/2014-10102/home-equity-conversion-mortgage-hecm-program-non-borrowing-spouse-solicitation-of-comment

 

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