Reverse Mortgage Regulations

The FHA today published loss mitigation guidance that is intended to help loan servicers work with borrowers to cure Home Equity Conversion Mortgages that are delinquent due to unpaid property taxes and homeowners insurance.

FHA is granting a temporary and narrow extension of FHA-Approval for Loan Correspondents through March 31, 2011, with conditions.

The Federal Housing Administration announced last week it would be extending condominium project approvals with an expiration date of December 7, 2010.

The Federal Housing Administration published Mortgagee Letter 2010-40, which implements the continuing resolution recently passed by Congress that kept loan limits for Home Equity Conversion Mortgages at $625,500 through September 30, 2011.

The U.S. Department of Housing and Urban Development published Mortgagee Letter 2010-39, which introduces a revised HUD-1 Settlement Statement that imposes penalties for false certifications or fraudulent activities and new language for sellers of a HECM for purchase transaction.

Following is a list of HECM program contacts at HUD's four regional Home Ownership Centers, and at headquarters.

NRMLA, MBA and ABA submitted joint comments to the Fed expressing general support for proposed regulatory changes that would prohibit deceptive advertising and improve disclosure of reverse mortgage information, but requesting a delay in mandatory implementation.

NRMLA today submitted comments to the Federal Trade Commission in response to a proposed rule that implements new safeguards to protect consumers from deceptive mortgage advertising and gives the agency new powers to seek civil penalties against violators.