While reverse mortgages are only available to a select group of consumers, the product still makes up a large portion of complaints received by the Consumer Financial Protection Bureau.
The FHA’s new budget reveals that the Obama administration is starting to see reverse mortgages as viable again.
Mel Watt said the regulator is considering reducing the balances of some homeowners’ mortgages, but the effort could prove to be challenging.
Approximately one-third of borrowers are not sure of their interest rate and many could still save hundreds a month through refinancing.
The president’s proposed budget shows a slowdown in the fund over the next two years and a bump in HUD’s FY2016 budget.
Monthly prepayment rate is highest since February 2009 as lenders have been recovering greater gross percentages of unpaid balances through REO liquidations than through short sales.