The Department of Housing and Urban Development will implement new guidelines spelling out changes to the Home Equity Conversion Mortgage program on Oct. 1. The guidelines will establish additional requirements to reduce losses and improve the fiscal safety and soundness of the HECM program, which has been hit hard by massive losses due to borrower default and steep home price declines. An FY 2012 actuarial audit projected $2.8 billion in HECM losses. However, the audit also projected a steady improvement of the Mutual Mortgage Insurance Fund’s HECM portfolio over the next seven years, becoming negative ...