HUD expects influx of reverse mortgage counseling because of the anticipated guideline changes that will take effect on October 1st. On August 9th, President Obama signed the ‘Reverse Mortgage Stabilization Act of 2013‘, which will allow HUD to make changes to the reverse mortgage program without Congress approval. This will allow HUD to be more nimble and make the necessary changes quickly to keep the program solvent and in the best interest of the United States. In the past, it would usually take a couple of years to make any changes to the program because of all the red tape and hoops HUD would have jump through to get Congress to approve changes needed.Because of these rumored changes that will more than likely take effect October 1st, HUD is expecting an influx of potential reverse mortgage borrowers into the required counseling sessions. HUD wants to make sure that these counseling sessions are not being pushed by the lenders and to make sure the counselors are still acting in the best interest of the client. Some reverse mortgage lenders are expected to advertise to borrowers that they should take advantage of a reverse mortgage now, before the changes go into effect. Also, that the lenders are in no way allowed to contact the counselors on behalf of a borrower unless the certificate the borrower received needs to have corrections made to it. HUD is also reminding the counselors that the counseling sessions with potential reverse mortgage borrowers should last no less than one hour to one and a half hours, of course some sessions may run longer depending on the amount of questions the borrower may have. To see the full letter that HUD sent to the counseling agencies and reverse mortgage lenders: click here.
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HUD Expects Influx of Reverse Mortgage Counseling
![HUD Expects Influx of Reverse Mortgage Counseling]()
Reviewed by Merlyn Rosell
Published :
Rating : 4.5
Published :
Rating : 4.5