Reverse Mortgage Rules Changed to Comply with HR3221.Sec 2122

HERA (HR3221) revamped the entire HECM product and this is just the beginning. The new ML doesn’t say much, yet it’s truly devastating to those who are amongst the non-FHA approved brokers who have been getting paid for “assisting” HECM borrowers. No ifs, ands, or buts – “but” – it’s over! HUD realized that the “cross-selling” matter is awfully complicated, so effectively; they are not doing anything yet. At least HUD is letting us know that there are no directives until the subject is researched.

(FHA Mortgagee Letter 2008-24, September 16, 2008 - HR3221.Sec.2122(a)(9), Housing and Economic Recovery Act)

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