Is Financial Assessment the Leading Cause for HECM Changes?
Reverse mortgages have undergone a number of reconstructive periods and are continuing to do so. Reverse Mortgage Daily explored some of the reasons behind proposed changes and changes that have already been made.
One proposed hypothesis is that financial assessment had a hand in reverse mortgage changes.
"An industry myth says that Financial Assessment reduces losses in the Mutual Mortgage Insurance Fund. Yet no data shows that. In fact, the Federal Housing Administration provided estimated data that shows exactly the opposite," reported RMD in part two of their profile reverse mortgage rule changes.
"More specifically, no Department of Housing and Urban Development data can be found supporting the notion that foreclosures from property charge defaults in the early years following closing create substantial losses in the MMIF."
The two part series features insights from James Veale, a guest poster for RMD who clearly outlines many of the changes we are seeing, as well as reasons why FA will likely continue to stay in the picture for the long haul.
To read more of Veale's insightful guest post on RMD click on the image above.