Financial Assessment for Reverse Mortgages Delayed

Although the “Financial Assessment Component” for Reverse Mortgage (HECM) Transactions was supposed to take effect on Monday March 2nd, the Federal Housing Administration has announced that the “rollout” will now be delayed anywhere from 30 to 60 days. Over the years there has been talk about some type of Financial Assessment being instituted for Reverse Mortgages and yet it never really came to fruition. The recent announcement that it would actually go into effect in March is probably the closest it has ever come to actually being a reality…but once again the date has been pushed back. It will be interesting to see what the “Assessment Process” will actually entail…and when it will actually come to pass. No one is looking forward to this new “dimension” of a Reverse Mortgage as it runs counter to the very concept of what a Reverse Mortgage is (i.e. A Loan that you don’t make Payments on). Any and all updates regarding this topic will be closely watched and detailed here in future posts.