FHA Upgrades Reverse Mortgage Program, Warns of Increasing Fraud by Loan Officers
October 5, 2006
With the reverse mortgage market heating up, the Department of Housing and Urban Development has revamped its FHA program to attract even more borrowers and lenders – while also warning that there has been an increase in fraud surrounding these loans. HUD is also reportedly looking at ways to use Ginnie Mae to securitize FHA home-equity conversion mortgages, which account for 90 percent of all reverse mortgage originations in the market. Some $926 million of reverse mortgages, mostly FHA-insured HECMs...