The US Department of Housing and Urban Development is planning to give mortgage bankers additional time to adjust their net worth requirements to $2.5 million says National Mortgage News.
During a legislative conference sponsored by the National Association of Mortgage Brokers, Federal Housing Administration assistant Secretary Vicki Bott told attendees HUD is preparing to issue a final rule that will “ensure there is a chance to ramp up to the new requirements.”
Last year, HUD announced it was planning to raise net worth requirements for Mortgagee’s from $250,000 to $2.5 million and planned to give mortgagees a three year phase in period.
Bott cautioned that changes to the final rule are “not substantially” different from what appears in the proposed rule.
In addition to raising net worth requirements, the rule would also eliminate FHA correspondents, putting the responsibility of managing brokers on the reverse mortgage wholesale lenders.
