Believe it or not: Reverse Mortgages for Co-ops are still up in the air

It is now well over a year since the Housing and Economic Recovery Act (HERA) was passed and that stated explicitly that Reverse Mortgages would be available for Co-ops. We have been waiting since then to hear exactly when this would be put into effect by HUD. We are still waiting.

Recently rumors have abounded that Teh Deaprtment of Housing and Urban Development (HUD) was going to issue the longest mortgagee letter (this is what HUD releases whenever anything changed in their FHA loan programs) about Reverse Mortgages for Co-ops. I had heard it was coming out in November, unfortunately, November came and went.

I have also heard that the program was supposed to start in January of 2010, but that is getting sooner and sooner.

I understand that HUD has no knowledge of Co-ops as they have never lent on them in any of their programs before, but a year is ridiculous! Hopefully we will get the news that we have been waiting for sooner than our Christmas presents.