HUD Plans Temporary Shutdown for Reverses

The Federal Housing Administration's reverse mortgage program is so close to hitting a 275,000-loan cap that officials are preparing to temporarily shut down (perhaps for only a few days) the program, which allows seniors to tap the equity in their homes.The Department of Housing and Urban Development was expected to announce the suspension of the FHA home equity conversion mortgage program on Feb. 13, an official told MortgageWire. Reverse mortgage lenders can still accept HECM applications, but they cannot approve loans until Congress passes a continuing resolution to fund government operations though Sept. 30. The CR also contains a provision that lifts the cap on HECMs until Sept. 30. The House has already approved the continuing resolution, and Senate lenders are trying to pass it by Feb. 15.