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HUD/OH RIN: 2502-AI79 Publication ID: Spring 2010 
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: 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  08/00/2010    
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