By Ben LaneJune | HousingWire
The U.S. Department of Housing and Urban Development and the Federal Housing Administration announced changes to its reverse mortgage program designed to keep non-borrowing spouses in their homes after the last surviving borrower dies.
Earlier this year, the FHA released new guidance that allows FHA-approved lenders to delay foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower.
Now, the FHA is expanding on those changes to its Home Equity Conversion Mortgage program, with a new policy that allows lenders to proceed with submitting claims on HECMs with eligible surviving non-borrowing spouses and case numbers assigned before August 4, 2014 in accordance with the terms of the mortgagee letter.
