Reverse Mortgage Advisor Program Eliminated

Unapproved FHA brokers will no longer be able to collect 25% of the commision on FHA Reverse mortgages.

HUD will be issuing a Mortgagee Letter within the next 30 days eliminating any so-called "HECM Advisor" programs. Because the law requires that, "All parties that participate in the origination of a mortgage to be insured under this section shall be approved by the Secretary," once the forthcoming M.L. is issued and takes effect, only employees of FHA-approved lenders and correspondents will be permitted to participate in the origination of HECMs.

See all the changes to the FHA Reverse Mortgage (HECM): http://www.themtgmentor.com/End_HECM_Advisor_Program.html

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