HUD Delays Reverse Mortgage Requirements

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On December 20, HUD announced in Mortgagee Letter 2013-45 that new requirements related to the FHA’s Home Equity Conversion Mortgage program (HECM) are tolled pending further guidance from the agency. Since announcing the new financial assessment requirements and funding requirements for the payment of property charges in September 2013, HUD has received comments that require HUD to update the requirements and guidance. Given those changes, HUD delayed the original date for compliance with the requirements—January 13, 2014—and will set a new effective date when it issues the updated guidance. Mortgagees will have at least 90 days to comply with the new guidance.