The FHA has lifted its 2-year ban on Sun City retirement community in Arizona. Folks are now able to resume with Home Equity Conversion Mortgage applications and loans with approval from the Department of Housing and Urban Development, according to a new report.
“I’m so delighted for our clients and the people in need, regardless of who they get [the reverse mortgage] from,” said Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Ariz, according to Reverse Mortgage Daily.
“It’s a welcome relief and it’s been a long time coming.”
The ban began in 2016 with the enforcement of the HUD's "free assumability" clause, alleviating the government from costs associated with foreclosures.
"Meanwhile, loan originators who have worked with residents at other Sun City communities that are located throughout the U.S. said they are experiencing the same roadblock," the report continues.
So while strides have been made, there looks to be a long road ahead for LOs.
To learn more about the ban and what it could mean for other communities in the U.S., click on the image above.