Tighter standards on reverse mortgages Applicants for reverse mortgages will undergo a “financial assessment” under new standards that will go into effect in March. WASHINGTON — Are reverse mortgages headed in reverse? Based on forthcoming federal rule changes for seniors who expect to apply for one, you might think so. But as a taxpayer, you might say, bravo: Toughening up qualification standards — including such basics as checking applicants’ credit, income and cash flows — is a leap forward, long overdue. Last week the Federal Housing Administration, whose reverse-mortgage program dominates the field, adopted guidelines tightening eligibility standards as part of an effort to avoid additional losses to government insurance funds. The changes, which are scheduled to take effect in less than four months, come on top of earlier reductions in maximum financing amounts that have resulted in sharp declines in the numbers of new loans being made. ~ Nations Housing, Seattle Times
Posted on: Sun, 23 Nov 2014 04:28:46 +0000
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