Skip to main content

Congressional Budget Deal Will Eliminate Funding for Reverse Mortgage Counseling

NationalMortgageProfessional.com
Apr 18, 2011

Legislation is scheduled to pass Congress which would eliminate all funding, totaling $88 million, for the U.S. Department of Housing & Urban Development's (HUD) Housing Counseling Program. These cuts include all funding for federally mandated reverse mortgage counseling. This budget was zeroed-out as part of the FY 2011 Continuing Appropriations Act (HR 1473). In order to obtain a Federal Housing Adminsitration (FHA)-insured reverse mortgage, which currently represents 95 percent of the market, federal guidelines mandate that all borrowers must first go through HUD-approved reverse mortgage counseling. The National Council on Aging (NCOA) is one of eight home equity converstion mortgage (HECM) Intermediaries that provide this counseling service nationwide. "This unique counseling helps older homeowners understand the costs, benefits, and risks associated with these loans," said Barbara Stucki, vice president for Home Equity Initiatives at NCOA. "Without this funding, the older Americans who can least afford it may have to pay for this critical advice out-of-pocket." Over the past three years, NCOA has worked with HUD and the reverse mortgage industry to improve the quality of counseling sessions. In addition, the loss of the counseling funding will impact counselors' ability to help reverse mortgage borrowers who are in default and at risk of foreclosure. "In these difficult economic times, people have to increasingly tap their home equity to make ends meet," said Stucki. "This new budget proposal is a major setback and increases the financial vulnerability of all older adults looking to use their home to stay at home."
Published
Apr 18, 2011
Top Texas Originator Sees No Surrender To 2023

Big cities will determine the battle

Industry News
Jan 26, 2023
There’s Good & Bad News On The Horizon

There will be a real estate slump, but the big cities are coming out much better

Industry News
Jan 26, 2023
Housing Prices Across Texas Likely Hobbled In 2023

But you’re getting a lot less for $1 million

Industry News
Jan 23, 2023
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023