The Department of Housing and Urban Development is planning to conduct an inventory of occupants of homes with a Home Equity Conversion Mortgage loan originated prior to 2014 to help protect non-borrowing spouses from eviction in the event of the HECM borrower’s death. The status of non-borrowing spouses (NBS) remains an issue with HUD relative to HECM books of business predating 2014, when the program did not provide protections to spouses of deceased HECM borrowers, FHA Commissioner Brian Montgomery said during a press briefing this week. Prior to August 2014, only borrowers over the age of 62 could be on the HECM note and on the title of the home. The policy created a problem for non-borrowing spouses, who could face eviction if the older spouse passed away. The HECM borrower’s death is deemed a “maturity event” that renders the loan due and payable. This meant that the ...