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HUD/OH RIN: 2502-AI79 Publication ID: Fall 2010 
Title: Home Equity Conversion Mortgages--Financial Assessment and Escrow Accounts (FR-5353) 
Abstract: Through this proposed rule, HUD takes another step to reform and strengthen FHA’s mortgage insurance functions and responsibilities. The rule focuses on FHA’s HECM program, which is FHA’s reverse mortgage program that enables a senior borrower who has equity in his or her home to withdraw a portion of the equity. Among other changes, this rule proposes to clarify the requirements under which a surviving spouse of a mortgagor may remain in the property after the death of the mortgagor homeowner, where the surviving spouse is not a mortgagor. This rule also proposes to require HECM lenders to perform a financial assessment of prospective HECM mortgagors prior to loan approval and closing. The rule would also limit the insurance benefits paid in connection with a claim involving amounts advanced on behalf of a mortgagor who has exhausted all HECM loan proceeds and is unable to pay property charges consisting of property taxes, ground rents, flood and hazard insurance premiums and assessments. HUD also proposes to provide greater flexibility in establishing the minimum age of eligible homeowners and of the initial mortgage insurance premium. These reforms are all directed to strengthening the HECM program and ensuring its availability in ht years to come for senior homeowners. 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 206.19    24 CFR 206.32    24 CFR 206.58    24 CFR 206.47   
Legal Authority: 12 USC 1715b, 1715z-1720    42 USC 3535(d)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  03/00/2011    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Kathleen Hardy
Housing Program Policy Specialist
Department of Housing and Urban Development
Office of Housing
451 7th Street SW.,
Washington, DC 20410
Phone:202 402-2163
Email: kathleen.hardy@hud.gov