New Rules—and Lawsuits—for Reverse Mortgages

SOURCE: Mortgage News Feed

This fiscal year has brought significant changes for reverse-mortgage borrowers and lenders. New restrictions under the Reverse Mortgage Stabilization Act of 2013 seek to make these loans less risky and less prone to default. Home equity conversion mortgages, or HECMs, are for homeowners who are at least 62. They allow the homeowners to draw on their home equity without repaying it as long as they stay in the house. They get the money upfront, and interest is deferred until the borrower dies or moves to a nursing home.

To read the entire article, please visit:
http://www.accountingweb.com/article/new-rules%E2%80%94and-lawsuits%E2%80%94-reverse-mortgages/223302


About The Author

Each week we post articles on FHA/VA Government news topics, ranging from FHA Direct Endorsement Underwriters, to current FHA underwriting guidelines, to new FHA rules/regulations, FHA compliance, FHA lending requirements and much more! PLEASE NOTE: We are NOT owned, operated or affiliated with HUD, FHA or the Federal Government in any way.

 


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.