The Federal Housing Administration is delaying implementation of key reverse mortgage rules and extending the appeals process on its recently released loan limit reductions for 2014.
FHA is giving interested parties until Jan. 31 to appeal and seek changes to the loan limits the agency published Dec. 6. The previous appeals deadline was Jan. 6.
Industry groups were surprised by some of the loan limit reductions, particularly in the hard-hit states where prices have not recovered from the housing downturn. They requested more time to appeal and prepare the necessary home sales price data.
On Jan. 1, some 146 counties will see loan limit reductions of over 20%, including 17 counties with reductions ranging from 40% to 50%, according to the National Association of Home Builders.
Separately, the Department of Housing and Urban Development told FHA lenders it is revising new Home Equity Conversion Mortgage reforms that were slated to go into effect Jan. 13.
After receiving comments, “HUD is updating its HECM financial assessment requirements and funding requirements for the payment of property charges.” The changes will go into effect 90 days after the new HECM guidance is published.