The Reverse Mortgage Program is About To Change
Following President Obama's signature of approval and the Senate's decision to pass the Reverse Mortgage Stabilization Act of 2013, which gives the Federal Housing Administration the authority to implement changes that will stabilize the reverse mortgage program, the FHA has announced that the new changes will come in August at the earliest, and will be fully implemented by October, according to an article published in Reverse Mortgage Daily.
The changes will be disclosed via a Mortgage Letter, which should arrive at the end of August, and the Department of Housing and Urban Development is hopeful that the changes can already be in place by October 1:
“However, FHA will take care to ensure it and the industry have sufficient time for an operationally responsible implementation.”
Among the changes the HUD and the FHA are looking to implement, pending the President's signature, are a financial assessment of the borrower(s), mandatory set asides for property taxes and homeowners insurance, restrictions on the amount of fund that can be initially withdrawn and, most importantly, inclusion of all borrower spouses on the loan regardless of age.
Now that the bill has gained the President's approval, the proposed changes will continue to move forward.
Federal Housing Administration Commissioner and Assistant Secretary Housing, Carl Galante said, after the bill's passing:
"This helps ensure that seniors who have worked hard their entire lives to purchase and maintain their home can continue to enjoy the comfort and security of that home."
Home security and peace of mind are essential during retirement and the changes coming to the reverse mortgage program are essential in maintaining the integrity and strength of the program. A reverse mortgage, and it's many available options, provide the flexibility and dependency older Americans need in later years.
As a last resort, a reverse mortgage can help retirees avoid foreclosure, but as a retirement planning tool, it can mean the difference between retiring on time and having to working full, or part, time during your retirement.
Interested in a reverse mortgage program? There are many to you with a reverse mortgage and plenty of ways to use it during retirement. Give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire, we're just here to help.
HUD will fully implement these changes by October 1, 2013, which is the beginning of fiscal year 2014 for the US government.
Changes are coming to the reverse mortgage...the time to act is NOW!
For more information, check out this blog post about the elimination of the reverse mortgage program as we know it: