For the second time, the Federal Housing Administration has extended the review and feedback period for the draft sections covering reverse mortgages in its handbook.
The draft sections, which would enshrine approximately 150 Mortgagee Letters and other policy documents that are currently used by mortgagees when originating or servicing Home Equity Conversion Mortgages into the Single Family Housing Policy Handbook 4000.1, were first placed for comments on Sept. 29 with the initial period expiring on Nov. 15.
But on Nov. 1, the period was extended until the end of this year. This new change further pushes the deadline until Jan. 31, 2022.
The final version will replace existing guidance covering areas such as loan origination through the post-closing and FHA endorsement; appraisal and property requirements; along with servicing and loss mitigation.
"Similar to other Handbook 4000.1 sections posted for feedback, the draft HECM Origination through Servicing sections contain revisions to policy language for improved clarity and consistency, proposed new policy, and to conform to the Handbook 4000.1 organizational structure," the September announcement from FHA said.
The draft document, whose sections run nearly 400 pages, will be folded into the main handbook when approved.
The FHA-insured HECM is by far the predominant reverse mortgage product in the marketplace, with past estimates giving it an over 90% market share. For 2022,
Total senior home equity, as defined as properties owned by those 62 or older, was at
However, several lenders, such as Reverse Mortgage Funding and
