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The question “Is what I am doing today preparing me for tomorrow” .In fact the success of entrepreneurs often comes down to planning then execution. None of us knows what the future holds but we do know some of what lie’s ahead. Take for example our industry: the suspension of the standard fixed rate and financial assessment. These are future certainties we should be planning ahead for. How?
1 Comment
Shannon,
As of early this morning we have no official news on the elimination of the fixed rate Standard. Unlike the elimination of the fixed rate Standard, financial assessment must go through a formal approval process which could take months following its final proposal.
HUD was hoping that Congress would grant it the authority over the HECM program to avoid most of the formal procedures it is now addressing. The last Congress did not grant HUD that new level of power.
It seems FHA has all of the authority it needs to stop the fixed rate Standard on 1/31/2013. Whether it has sufficient time to issue the necessary Mortgagee Letter to do so before 1/31/2013 is rising to the level of being questioned.
As to financial assessment, it may be some time off in the future. A few of us do not expect this new requirement to go into effect until late 2013 or even mid 2014 UNLESS this (new) Congress grants HUD the requested greater authority over the HECM program (which is highly unlikely).
In uncertainty, our greatest ally is flexibility. Embrace flexibility; right now it will be among your best business attributes.
As you state,readers should have a business plan ready to implement when the expected outcome, no fixed rate Standard and some type of financial assessment, fully go into effect. But then they should also be prepared for a stepped situation where we first experience the elimination of the fixed rate Standard and then after a period of time (very short or somewhat longer), the establishment of financial assessment.
In times like these, our greatest allies are staying current on how events are shaping up and being flexible.