Julia Gordon vows support for reverse mortgage industry at conference

Federal Housing Administration (FHA) Secretary Julia Gordon reiterated the involvement of the U.S. Department of Housing and Urban Development (HUD) and the administration of President Joe Biden in the stewardship of the Home Equity Convertible Mortgage (HECM) program. confirmed. Mortgage industry experts at this month’s National Conference.

At the National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo in Atlanta in early November, Gordon said that the public and private sectors are raising awareness of senior housing and issues related to aging. I shared a prepared remark about the need to keep She also encouraged continued dialogue with associations and other industry bodies to improve the program where necessary.

Responding to the needs of an aging society

The commissioner began her remarks by looking at the venue city and how it could serve as a microcosm of the rest of the country in terms of its growing elderly population.

Julia Gordon

“This is a city with a rapidly aging population, with people over the age of 65 making up almost 12 percent of the Atlanta metropolitan area population,” Gordon said. “And of course, this is a trend that we see in many metropolitan areas, and it’s actually everywhere. It’s not news. We’ve been talking about it for years. But here today. Given the crowd that is gathering, I wanted to mention that.”

This not only helps highlight the need for programs like HECM, but also the need for greater cooperation between the public and private sectors.

“As the population ages, the federal government and private sector will need to focus on housing availability and affordability for seniors the same way they do for newly formed households,” she said. said, “And that’s why I believe. [reverse mortgage professionals] It is very important to do I believe FHA’s HECM products are all about helping seniors who want to stay at home. ”

Gordon also reiterated the Biden administration’s commitment to the basics of the HECM program.

“Under this administration, we will continue to do our best. [HECM] The program and the benefits it, when deployed properly, will bring to improve the quality of life and housing stability of senior homeowners.”

Need for Industry Feedback and Discussion

Gordon omitted some of his other prepared remarks to underscore the need for continued dialogue between members of the HUD, FHA, and reverse mortgage industry, noting that there will be more programs in the coming months and years. was improved to better fit.

“Your feedback on our work is the most important thing we get,” explained Gordon. because […] We are a relatively small and consistently under-resourced office relative to the size of the programs and portfolio we manage. And there is a certain reality in the fact that when we hear concrete recommendations for policy improvement, they are more likely to grab our attention and take action than vague comments. […]”

She cited comments submitted to HUD. HECM section draft Single Family Homes 4000.1 Handbook and Proposed Defect Taxonomy application Reverse mortgage. Specific feedback about such policies gets more attention than general comments, she said.

“This is the kind of input that we pay a lot of attention to. [and that] We’ll get through it,” Gordon said. “Even after announcing the policy, when we receive feedback, we will try to see if there are ways we can improve this. [or] do better. ”

That said, it is not always possible to act on all feedback received and HUD and FHA staff may have a different lens to perceive policy priorities. does not diminish the need for active and open dialogue. among industry participants, stakeholders and government officials,” she said.

“In my view, and throughout my career, I have found that the most important thing is to build this relationship so that we can have an honest dialogue.” We owe each other as individuals and to the elderly homeowners we serve.”

The Need for a Reverse Mortgage

To conclude her remarks, Gordon acknowledged the difficulties facing the mortgage business and the challenges facing the capital markets. But these challenges help drive the need for products and programs like HECM, she said.

“We are fully aware of the pressures and concerns that are out there,” she said. “We also see many reasons [to] It’s a strong product, it’s a strong industry, and we think there’s a need for it in the market. I think we can all work together. This means lenders, consumer advocates, government agencies and investors working together to navigate the difficult part of the economic cycle we are entering. ”

Gordon recently shared a conversation with Ginnie Mae President Alana McCargo, stressing that both the FHA and Ginnie Mae Proverbs are open to reverse mortgage professionals.

“If there are problems ahead, it’s great to reach out early,” she said. “We’re all there to help get through this time together. We would like to thank you again for the work you are doing for both the FHA HECM program and the community.”

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