HUD Wants to Know What You Think…About the Financial Assessment ChangeFor the first time, since announcing the changes to the Reverse Mortgage Program, which were implemented on September 30, HUD is asking for feedback.Specifically, about the financial assessment changes coming on January 13 of next year.The 30-comment period, which is set to end on October 15, after beginning on September 12, asks all those who are interested on submit their comments electronically, or by mail, to its Regulations Division, Office of General Counsel. However, it encourages all interested parties submit their feedback electronically.
Carol Galante, HUD’s assistant secretary for housing, and commissioner of the FHA, stated in an
article in Reverse Mortgage Daily:
“Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public.”Whether electronically or by mail, I like that the reverse mortgage industry finally has the opportunity to comment on the upcoming changes if they wish to do. It’s important to open up a conversation on the upcoming changes, and all they would mean for the consumers in the future.
While the changes have been looking more and more attractive than they initially were, after many a careful consideration, the financial assessment portion still has me on edge. It’s no wonder that HUD has asked for industry feedback on the topic.Thus far, all the changes that have been implemented have to do with changing the program one way or another.
The financial assesment, however, is the first change that directly affects consumers hoping to qualify for the reverse mortgage. It’s true, that while the financial assessment would guarantee a smoother process, and ensure future borrowers are better insulated, there will be many consumers who would be left out because of it.I understand that a financial assessment would limit consumer risk but it presents an interesting dilemma.
The program needs a way to protect consumers but that way will end up shutting out other consumers in the process. For now, the HUD is demonstrating it values what the industry has to say. It’s definitely a step in the right direction.At
PS Financial Services, we’re here to help you take the plunge into a comfortable retirement. Let us know if a
reverse mortgage program is right for you at (888) 845-6630 or via email at
info@PSReverseMortgage.com.