New financial assessments for government-insured reverse mortgages will become mandatory for case numbers issued on or after April 27, according to a mortgagee letter issued Thursday.
The Federal Housing Administration announced earlier this month that it would postpone the original March 2 effective date for the assessments due to a delay in certain system enhancements needed to support the policies, but it had not specified what the new date would be.
Having the extra time for implementation has been helpful because mortgage companies were experiencing difficulties meeting the first deadline, said Cecilia Delgado, a reverse mortgage account executive at Maverick Funding Corp.
“We’d all been going nuts,” she said.
Once the requirement is effective, lenders will need to employ the new financial assessment calculation in determining whether seniors qualify for a government-insured reverse mortgage. The FHA issued guidance for financial assessment last November.