Reverse Mortgage LO's and Clients Still Await FHA Approval for Condos
The approval process for condominiums under Home Equity Conversion Mortgages is still looking to be quite arduous for originators and their clients. The Federal Housing Administration's approval process, combined with resistance from condo boards has put a strain and halt on getting condos approved for HECMs, according to a recent report.
"In the Chicago area, David Hochberg, vice president of mortgage lending on Team Hochberg at PERL Mortgage, said about 50% of his HECM applicants with condos live in non-FHA-approved communities," according to Reverse Mortgage Daily.
“We have more than 400 people on waiting lists in condos who have called us from our radio ads to secure a reverse mortgage and can’t because of their management companies. They’re bummed. They are extremely upset.”
According to the report, some of the resistance from condo boards come from a general misunderstanding of the reverse mortgage product. Some boards have even gone as far as to say "We don't want those type of people living in our condo," according to Hochberg.
To learn more about the disconnect between HECM LO's, condo boards and the FHA, click on the image above.
