New reverse mortgage rules protect spouses

Screen Shot 2015-06-13 at 3.46.07 PMBy 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.

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