In response to industry concerns about changes to the federal reverse mortgage program, the implementation date is being delayed.
The Department of Housing and Urban Development announced changes to the home-equity conversion program during September in Mortgagee Letters 2013-27 and 2013-28.
Mortgagee Letter 2013-27 outlined funding requirements on HECMs for the payment of property charges based on the financial assessment.
Some of the changes were effective on Sept. 30, while the others impact case numbers assigned on or after Jan. 13, 2014.
Mortgagee Letter 2013-28 provided parameters for the required financial assessment outlined in Mortgagee Letter 2013-27.
But HUD has decided to delay the implementation date.
“HUD received comments after publishing the mortgagee letters and its notice in the Federal Register,” HUD said in Mortgagee Letter 2013-45 issued Friday. “As a result, HUD is updating its HECM financial assessment requirements and funding requirements for the payment of property charges.”
New guidance will be issued by HUD in another mortgagee letter that will delay implementations to 90 days after the letter is issued.
