The Federal Housing Administration (FHA) announced changes to its reverse mortgage program designed to keep non-borrowing spouses in their homes after the last surviving borrower dies.
Earlier this year, FHA issued guidlines that allows FHA-approved lenders to delay foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower.
Now, FHA is expanding those guideline by allowing lenders to proceed with submitting claims on Home Equity Conversion Mortgages with eligible surviving non-borrowing spouses and case numbers assigned before August 4, 2014 in accordance with the terms of the mortgagee letter.
Read HUD’s Press Release with summary of when lenders may proceed with claims and conditions upon which non-borrowing spouse may remain in home: