What are the actual occupancy rules for Home Equity Conversion Mortgages? The answer may surprise you as Dan Hultquist explains.
Contact Dan with your questions
Suggested guidelines for absences from primary residence
Share:
Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
5 Comments
Dan Hultquist always provides a wealth of information. Great interview!
Good to know!!
Then there is the dirty laundry of servicing. What percentage of homes with HECM mortgages are occupied by third party renters and generally for how long?
One originator had a hard time reaching some prospects who could really use a HECM Refi by phone and went visiting their homes. He was shocked by how many renters who have been living in the homes he was visiting had unrelated third party tenants. These renters had been in the home for years.
His experience was purely anecdotal but it shows that current HUD policy needs revising as well as the clarity that Dan shared.
HECM endorsements occur approximately four months after closing (on average). Looking at CNAs, it seems as if total monthly HECM endorsements will be dropping by April, if not earlier. Predicted rising interest rates and slowing growth in the appreciation of existing homes may help explain why.
Our industry is still in secular stagnation when it comes to first time HECM borrowers. Remember how reaching out to financial advisers was going to change that trend but facts are facts. When first ttime borrower numbers are in stagnation, it is hard to make the argument that our financial adviser outreach is all that effective.
The non borrowing spouse exceptions Dan mentions ONLY applies to qualified NBSs.