In a move to help HUD manage risk to the Federal Housing Administration's Mutual Mortgage Insurance Fund (MMIF), HUD makes major changes to the Home Equity Conversion Mortgage (HECM) program, including consolidation of the HECM Standard and HECM Saver programs into one.
The changes were initiated after homeowners selecting lump-sum payments rather than periodic payouts strained the MMIF. Seniors depleted their assets quickly and could not keep pace with property taxes and insurance payments.
The changes authorized by the Reverse Mortgage Stabilization Act of 2013 include updates to the initial mortgage insurance premiums and principal limit factors and restrictions on the amount of money borrowers may draw down at closing and during first12 months following closing.
Changes also include requirement of a financial assessment for all borrowers to ensure they will have the capacity and willingness to meet all their financial obligations and terms of the reverse mortgages, and a requirement of a set-aside at closing for payment of property taxes and insurance based on the results of the financial assessment.
The financial assessment and property charge requirements become effective for all loans with case numbers assigned on or after Jan. 13, 2014. Changes to initial disbursement limits, single disbursement lump sum payment option, initial mortgage insurance premiums, Principal Limit Factor Tables, and initial mortgage insurance premium calculations for refinance transactions are effective for case numbers assigned on or after Sept. 30, 2013.
Keep up-to-date on the latest private, public, and subsidized housing news. Visit our website at http://www.cdpublications.com/f112
Audio conference: How New Federal and Foundation Trends and Priorities Will Affect Funding for Children's Programs in 2014
- In this Sept 26 audio conference you'll gain insights that will give you a clear edge in your grant seeking, along with invaluable added lead time on when to expect 2014 solicitations. http://www.cdpublications.com/store/640
Audioconference: Succeeding in Today's Federal Grantwriting Climate
- Federal priorities and requirements have changed---what worked yesterday may not work today. Join us 9/12/2013 to learn how to succeed in the today's federal grantwriting climate. http://www.cdpublications.com/store/631
Securing New Funding for Your Juvenile Justice Programs
Finding New Federal and Private Funding for Domestic Violence Programs
Download FREE PDF samples or try our website demo at http://www.cdpublications.com/samples