Share
On July 18, 2016, NAR submitted comments with the Federal Housing Administration (FHA) on proposed changes to the Home Equity Conversion Program (HECM) and HECM for Purchase Program. NAR stated its support for FHA's efforts to reduce the volatility of the HECM program, which has had a negative effect on the Mutual Mortgage Insurance Fund (MMIF) in the past. Currently, the MMIF is financially healthy and strengthening the HECM program would further strengthen the MMIF.
In addition, NAR urged FHA to remove the proposed requirement that pre-HECM counseling be completed prior to the borrower signing a sales contract or making an earnest money deposit in a HECM for Purchase transaction, which could harm certain potential borrowers. NAR also urged FHA to allow for seller concessions in a HECM for Purchase transaction, which would be in line with FHA rules for forward mortgages.
NAR Letter on Proposed HECM Changes
Megan Booth, mbooth@realtors.org, 202-383-1222
Sehar Siddiqi, ssiddiqi@realtors.org, 202-383-1176
Colin Allen, callen@realtors.org, 202-383-1131