A Pause for HECM Changes?
Executive orders. This practice of exercising executive authority has become increasingly frequent and controversial in recent presidential administrations. In 2013 HUD was granted the authority to in effect, issue ‘executive orders’ under FHA’s expanded powers. President Trump has promised to cut federal regulations dramatically. Will the administration’s executive orders curb the rule-making authority of FHA?
The HECM Stabilization Act of 2013 granted FHA the Congressional authority to enact reforms to the Home Equity Conversion Mortgage program as needed to ensure the program’s longevity.
The Trump administration’s recent executive order mandates that all agencies to keep additional regulatory costs at zero, unless required by law. Under a regulation-cutting administration HUD may find itself hamstrung in enacting their recent set of HECM rules which were due to be enacted on September 19th this year. These additional rules included the authority to reduce first year distributions from 50%, a 95% property acquisition threshold, and an 11% cap on closing costs for purchase transactions.
Reverse mortgage lenders may soon get a…