HUD has been discussing changes to Reverse Mortgages for a long time. Many changes have already been introduced such as limits on the amount someone can receive in year one, waiting periods, etc. All of the changes are designed to protect consumers from making risky decisions.
One procedure has been discussed since 1/13/2004 and promulgated and then delayed several times. Finally, it was set that 3/2/2015 would be the start date of this new financial assessment requirement. Again, it was delayed and now it is set for 4/27/2015. Maybe this time it will start. All borrowers who have a Case Number assigned after that date will be processed under the new rules.
What does this mean?
- Borrowers will need more documentation, just like on a regular mortgage application.
- The rules have been established so that borrowers can be evaluated as to whether they will be able to meet payments on taxes, insurance, repairs, etc.
- Borrowers may have to “set aside” money to fund fixed housing costs.
- Proper enforcement of the regulations should help insure that borrowers do not lose their properties. In short, Reverse Mortgages will be even safer than now.
- These rules will make it more difficult for some seniors to qualify for these loans.
What should prospects do?
- Remember that you have to get a case number; you do not need to finish your loan by 4/27.
- Call your friendly Reverse Mortgage Loan Broker.
If you do not know a Reverse Mortgage specialist, call me, your friendly Educator, and I will give you some names.
So it is time to move. What do you have to lose by investigating these changes? Nothing. What might you gain? Some monthly income to increase your enjoyment of life. Seems Win-Win to me. Call Duane Gomer at 800-439-4909. See you at closing.