Reverse Mortgage Financial Assessment Will Take Effect

The Department of Housing and Urban Development (HUD) released Mortgagee Letter 2014-22 on November 10, 2014 to announce the implementation of financial assessment.  The financial assessment for reverse mortgages will take effect for all case numbers issued on or after March 2, 2015.  According to HUD, "the mortgagee must evaluate the mortgagor's willingness and capacity to timely meet his or her financial obligations."  The idea from HUD's standpoint is to make the HECM a safer product.  However, many have raised the question whether HUD is considering the impact these changes will have on low to moderate income level households.  There is concern in the reverse mortgage industry that many senior homeowners will not qualify and will be held back from an opportunity to improve their lives.   The original intent of the HECM was to help our seniors improve their financial situation, and it seems that these changes will take away from the spirit.  Stay tuned and keep up to date on the latest changes at:  http://reversemortgagehighlights.blogspot.com/.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez
Certified Reverse Mortgage Professional, CRMP
NMLS# 473353
Toll Free (877) 500-0454
Local (702) 460-6222