Page 9 - WSAAG098_WS Booklet

The Steady March of Progress

2008 TAKING ACTION:
The SAFE Act requires states to implement uniform procedures when
licensing and registering HECM loan originators. The Housing and
Economic Recovery Act establishes more consumer safeguards, such as
a limit on origination fees, rules against cross-selling, and guidelines for
counseling independence.

2009 THE HECM FOR PURCHASE:
The HECM for Purchase is introduced, allowing borrowers to purchase
a new home using a HECM loan. This option provides seniors with the
choice of aging in place in their current home or aging in place in a new
home.*
*The right to remain in the home is contingent on paying property taxes and
homeowners insurance and complying with the loan terms.

2010 THE RESULTS:
Research conducted by Marttila Strategies for NRMLA reports that 90%
of surveyed borrowers felt no pressure to proceed, 90% did not feel they
were misled in any way or given wrong information, 80% said they were
likely to recommend the product to a family member, and more than
50% said they could not meet their monthly expenses without their
HECM.

2013 NEW POLICIES:
HUD releases new HECM policies creating more consumer and product
safeguards, including placing a limit on the amount of equity borrowers
can access their first year.

2014 NON-BORROWING SPOUSE PROTECTIONS:
HUD Implements comprehensive new safeguards for non-borrowing
spouses. To remain in the home after the HECM borrower dies, the
eligible non-borrowing spouse must meet certain conditions, such as
showing proof of marriage status at the time the loan was taken out,
proving legal ownership, and complying with all existing loan terms.