Revised Reverse Mortgage Condo Forms Encouraging for Loan Officers

The Federal Housing Administration (FHA) earlier this month announced that it has revised two of its forms relevant to condominium owners seeking FHA relief in the form of loan programs or certification: its condominium loan-level/single-unit approval questionnaire and FHA condominium project approval questionnaire. This is according to the publication of Mortgagee Letter (ML) 2021-09, released on March 15.

Both forms have relevance for the Home Equity Conversion Mortgage (HECM) industry, as they will each be required for any borrower seeking to get an FHA-sponsored reverse mortgage on a condominium unit. Reverse mortgage loan officers in two major origination areas are very encouraged by this news, as is a company who has worked with originators to facilitate both single-unit and full project approval.