The Department of Housing and Urban Development issued a proposal yesterday to codify recent changes to its reverse mortgage program and to provide additional protections for seniors, including a cap on annual interest rate increases, NationalMortgageNews.com reported yesterday. The Federal Housing Administration has revamped its Home Equity Conversion Mortgage program over the past two years to tighten up the reverse mortgage program and require financial assessments for the first time to ensure borrowers have the financial wherewithal to remain in their home and pay for property taxes and homeowners insurance. Now, FHA wants to add additional consumer protections, according to Golding. "As we grow older as a nation, we have a responsibility to ensure reverse mortgages remain a safe, secure and sustainable financial option for future generations of senior homeowners,” said Edward Golding, principal deputy assistant secretary for housing at HUD.
