Litigation Prompts Revamp of FHA Reverse Mortgage Policy

SOURCE: Mortgage News Feed

The Federal Housing Administration (FHA) will no longer allow lenders to delay demanding payoffs of a certain group of reverse mortgages by the surviving spouses of the deceased borrowers. In a recently issued letter to lenders, the FHA announced it was rescinding a January letter that put in place a policy known as Mortgagee Optional Election Assignment (MOE). It applied to reverse mortgages with FHA case numbers assigned before Aug. 4, 2014.

To read the entire article, please visit:

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.