Editor’s note: A previous version of this article misidentified Rob Cooper of Reverse Mortgage Funding as Jeff Cooper. RMD regrets the error.
In the eight years since it was first offered under the Home Equity Conversion Mortgage program, the HECM for Purchase (H4P) has failed to gain traction, despite the fact that many believe it could be critical to alleviating a housing problem for a great number of aging boomers. Some in the industry claim that originators haven’t worked hard enough to spread the word about the H4P, while others point to product flaws that make it unmarketable.
Recently, HUD made strides to address problematic H4P requirements that many say have hampered the product’s success. But its ruling failed to address one important issue and left the industry seeking clarification regarding another. Industry commentators say that while HUD’s acknowledgement of the issues is a positive step, there are still significant barriers in place that are preventing the H4P from gaining momentum.