Reverse Mortgage Rules Are Changing: Act Now Before New Rules and Procedures Take Effect

Beginning March 2nd 2015, the Housing and Urban Development (HUD) will implement new rules and guidelines to the reverse mortgage loan program. HUD guidelines will now require lenders to conduct financial assessments to more thoroughly evaluate reverse mortgage borrowers. These changes could directly impact your ability to qualify for a reverse mortgage and/or the amount of cash you may receive at closing.

As part of the assessment, lenders will be required to collect additional documentation from the borrower, including but not limited to credit history information, income and asset verification.

The objective of the financial assessment is to evaluate the borrower’s “willingness and capacity to timely meet his or her property obligations” (property taxes, homeowner insurance, association dues, etc.) and otherwise comply with reverse mortgage loan requirements.

While the financial assessment changes are being implemented to ultimately protect borrowers and further strengthen the Home Equity Conversion Mortgage (HECM) reverse mortgage loan program, the new guidelines could restrict your access to this important retirement planning tool. If you have been considering a reverse mortgage, or know a family member who is, call now to learn more about the reverse mortgage and new requirements. We are here to help you through the process with no obligation or pressure.

Submitted by: Texas Reverse Mortgage Today

Phone Number: (800) 304-4143