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HUD/OH | RIN: 2502-AI79 | Publication ID: Fall 2009 |
Title: ●Home Equity Conversion Mortgages--Financial Assessment and Escrow Accounts (FR-5353) | |
Abstract: This proposed rule would establish regulations to require Home Equity Conversion Mortgage (HECM) lenders to perform a financial assessment of HECM applications prior to loan approval and closing. The financial assessment is intended to help lenders ascertain whether the HECM loan proceeds combined with the borrower's assets and income will suffice to pay recurring property expenses, including property taxes, ground rents, flood and hazard and property insurance. Based on the total amount of HECM proceeds compared to the applicant's income, assets, and financial obligations, HUD's Federal housing administration (FHA) will permit a lender to establish and fund an escrow account for payment of property charges or permit, under limited circumstances, the borrower to take out subordinate financing when necessary to pay required costs needed to close the HECM loan. As an alternative to denying the loan application, the mortgagor may require a principal limit set aside for payment of property charges. | |
Agency: Department of Housing and Urban Development(HUD) | Priority: Substantive, Nonsignificant |
RIN Status: First time 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 |
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Timetable:
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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 |