Lien Seasoning FAQ

To expand on our previous post about requirements for non-HECM lien seasoning, we have some frequently asked questions below: 1. If I took out a loan in the past 12 months but drew less than $500 at closing or through draws after closing, can the lien be paid off through closing? Yes.

Reverse Mortgage Seasoning Requirements (for Existing Non-HECM Mortgage Liens)

Change is in the air. Mortgagee Letter ML 2014-21 spelled out a few new changes to the HECM reverse mortgage program. The one change garnering all of the attention has been financial assessment, which starts 3/2/15, however the change to the reverse mortgage seasoning requirement deserves some attention as well and it begins much sooner; 12/15/14. Effective for case …

Reverse Mortgage Financial Assessment Begins March 2, 2015

After much anticipation, HUD has released guidance for reverse mortgage financial assessment. This new change will affect all borrowers whose case numbers are assigned on or after March 2, 2015. HUD states “the purpose of financial assessment is to evaluate a mortgagor’s willingness and ability to meet his/her financial obligations and to comply with the …