A copy of the long awaited RESPA FAQ has been posted to HUD’s website and includes 12 questions pertaining to how the new GFE should be filled out for the HECM program.
The questions listed mostly cover topics regarding principal limits and monthly payments. For example:
1.) Q: Reverse mortgage do not have a “loan amount.” Rather there is an initial principal limit. In the loan summary section on the GFE and on page 3 of the HUD-1, what is considered the initial loan mount on a reverse mortgage?
A: The initial loan amount on a reverse mortgage is the initial principal limit.
What the FAQ doesn’t address is the topic of compensation and how it relates to reverse mortgages which is something many are waiting for. You can see a copy at the link below. The reverse mortgage topics start on page 23.
