Just this month, HUD announced that March 2nd, 2015 will be the day that they will require Lenders to begin scrutinizing Reverse Mortgage applicant's credit reports . In addition, Lenders will be required to evaluate the borrower's willingness and capacity to meet his/her financial obligations and comply with credit requirements.
For anyone not familiar, this is a HUGE change. You see, currently Lenders are not required to do these things. There's sure to be plenty of conversations, guideline changes, and new forms soon so stay tuned.
How can you use this news, knowing that this change is coming? Well, if you're considering either a Reverse Mortgage refinance OR Reverse Mortgage purchase (yes I do both), then you may want to put that plan in motion NOW versus waiting to roll into Q1 2015.
This also means that because a lot of folks will be 'getting off the fence,' the Counseling Agencies will be busier which could create backlog / increased turn times.
If you have specific question on Reverse Mortgages, I'm happy to help! You can call me directly at 951-335-8134 OR email your scenario to jwiggins@amerifirst.us.
Happy Thanksgiving Everybody!
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