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.

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