On June 18, 2014, the Federal Housing Administration (FHA) released two Mortgagee Letters on the Home Equity Conversion Mortgage (HECM) program. The first Mortgagee Letter, ML 2014-10, reminds mortgagees of FHA’s requirements prohibiting misleading or deceptive advertising, including in descriptions of the HECM program. The second Mortgagee Letter, ML 2014-11, addresses risk associated with certain fixed interest rate products. FHA will only insure fixed interest rate reverse mortgages where the homeowner is limited to a single, full draw made at closing.
FHA Reverse Mortgage Changes
Search Washington Report