HUD tries to clear things up

Per MPA:

Peter Bell, President of the National Reverse Mortgage Lenders Association, praised the new policy guidance from HUD regarding the Home Equity Conversion Mortgage for its clarity on what had been a confusing issue.

“As the national voice of the reverse mortgage industry, NRMLA appreciates today’s guidance from HUD that resolves longstanding concerns about the responsible treatment of non-borrowing spouses,” said Bell. “This issue has perplexed homeowners, lenders, and housing counselors for years and it is a relief to have clarity.”

The letter from HUD states: that: “Mortgagees must notify HUD of their election to evaluate at HECM with an FHA Case Number assigned prior to August 4, 2014, and initiate assignments subject to the timeframes specified in this Mortgagee Letter.”

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