2502-AI79 201610 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 2502 Office of Housing OH 2500 Department of Housing and Urban Development HUD Federal Housing Administration (FHA): Strengthening the Home Equity Conversion Mortgages (HECM) Program to Promote Sustained Homeownership (FR-5353)

The Home Equity Conversion Mortgage (HECM) program is FHA's reverse mortgage program that enables senior homeowners who have equity in their homes to withdraw a portion of the accumulated equity. The original intent of the HECM program was to ease the financial burden on elderly homeowners facing increased health, housing, and subsistence costs at a time of reduced income. Through authority granted to HUD in the Reverse Mortgage Stabilization Act of 2013 to implement additional or alternative requirements necessary to improve the fiscal safety and soundness of the HECM program, and the Housing and Economic Recovery Act of 2008, HUD has made significant changes to the Home Equity Conversion Mortgage (HECM) program by mortgagee letter. This rule codifies those program changes in the HECM regulations. This rule also makes several additional origination and servicing changes to the HECM program which will continue to stabilize the program, address gaps resulting from changing housing markets and borrower demographics, and enhance the HECM program’s sustainability. Together, these program changes would realign the HECM program with its original intent, continue to strengthen Mutual Mortgage Insurance Fund and help ensure the continued availability of this important program for our aging seniors.

]]> Economically Significant Previously Published in The Unified Agenda Final Rule Stage Yes No 24 CFR 206 12 U.S.C. 1715b 12 U.S.C. 1715z to 1720 42 U.S.C. 3535(d) No Proposed Rule 05/19/2016 81 FR 31770 NPRM Comment Period End 07/18/2016 Supplemental NPRM 08/11/2016 81 FR 2016 Second NPRM Comment Period End 09/12/2016 Final Action 01/00/2017 No No None No No No No Karin Hill Senior Advisor, Office of the Deputy Assistant Secretary for Single Family Housing 2502 Office of Housing OH 202 708-3084 451 7th Street SW., Washington DC 20410