CFPB Consumer Laws and Regulations SAFE Act CFPB Manual v.2 (March 2012) SAFE 1. or federally insured credit union, including certain non-federally insured credit unions. 8.. reverse mortgages, home equity lines of credit, and other first and additional lien loans. Unique identifier.
Federally insured reverse mortgage rules are getting a makeover. If you are considering applying for a reverse mortgage, take note: The Federal Housing Authority has made changes to its Home Equity conversion mortgage program (hecm) effective April 1, 2013.
In fact, it works the opposite way: Homeowners get a check from the bank either monthly, in a lump sum or as a line of credit. The vast majority of reverse mortgages are home-equity conversion.
Although the FHA’s rules and regulations for the reverse mortgage loan may seem stringent to some, they are designed with the borrower’s best interests in mind and are truly beneficial to you as a borrower.
The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender. If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s HECM program.
The final requirement of a FHA-insured reverse mortgage is maintaining the home’s condition. The home must remain in good repair throughout the course of the loan, as determined by the loan servicer.
An AARP Public Policy Institute analysis of HUD data shows that under the new rules, a 62-year-old borrower getting a reverse mortgage with a 5 percent interest rate would be able to draw 11 percent less money from a home than under current rules. For an 80-year-old borrower, there would be a 12 percent reduction.
"Our phones are ringing off the hook right now with people scrambling to find a counseling company to get their FHA (Federal Housing. do not affect existing reverse mortgage borrowers. Beginning.
Most reverse mortgages today are called Home Equity Conversion Mortgages (HECMs). HECMs are federally insured by the Federal Housing Administration (FHA). This guide covers typical features and requirements for HECM reverse mortgages. Non-HECM reverse mortgages may have different requirements and features.
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