Reverse Mortgage Lending Opens Up in Texas. On November 2, Texas voters approved Proposition 2 by a 64% to 36% margin. This constitutional
amendment makes reverse mortgage lending more feasible than when the reverse mortgage concept was first approved in the state in 1997 with the introduction of home equity lending. A reverse mortgage is a first mortgage
that lets senior homeowners convert their home equity into cash while deferring repayment until the senior no longer occupies the home. Prior to passage of Proposition 2, Texas was the only state that did not allow
reverse mortgage lending. With the passage of this measure, reverse mortgage lending will be available in all 50 states. The MBA fully supports reverse mortgages and recently formed a Reverse Mortgage Lenders Advisory
Group to focus on issues specific to this growing niche market.
Contact Tina Haskell at (202) 861-3135.
Y2K Non-compliance. HUD has informed the MBA that many lenders submitting EDI transactions for Mortgage Record Changes and Terminations (Transaction Sets 260,
264, 266) are using non Y2K complaint versions of the transactions. Mortgagee Letter 99-16 established a deadline of September 30, 1999 for compliance. You may contact Silas Vaughn at HUD 708-1994 x 3545 for more
information.
Contact Vicki Vidal at (202) 861-6993.
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