U.S. Housing Agency Eases Rule for Spouses of Deceased Borrowers
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The U.S. Department of Housing and Urban Development has rescinded a 2008 rule that forced some surviving spouses of reverse-mortgage borrowers to choose between losing their homes or paying more than the properties were worth to stay in them.
The agency, which is being sued in federal court by a widow and two widowers of reverse-mortgage borrowers facing foreclosure, notified the plaintiffs this week that they were ending a policy that required surviving spouses to pay the full mortgage balance to keep their homes even if the amount exceeded the value of the property. The agency said it would issue more guidance on the matter in the future.