NRMLA asks Congress to restore HUD housing counseling funds
Source: HousingWire ↗
The National Reverse Mortgage Lenders Association (NRMLA) has formally asked Congress to restore funding that was rescinded for the Department of Housing and Urban Development’s (HUD) housing counseling program, warning that the loss of those funds could tighten access to mandatory counseling and delay the closing of Home Equity Conversion Mortgage (HECM) loans. In a November 2 letter to congressional appropriations leaders, NRMLA President Steve Irwin highlighted that the presidential pocket‑rescission of appropriated money threatens the independent, third‑party counseling required by law for every prospective HECM borrower. Under Section 255 of the National Housing Act, a counseling certificate from a HUD‑approved agency must be issued before a reverse mortgage can be legally closed, and lenders are prohibited from paying for, steering borrowers to, or using agencies affiliated with them to ensure seniors receive objective information.
Irwin stressed that because lenders cannot fund or direct the counseling process, federal appropriations are essential to sustain the independent counseling infrastructure that supports HECM originations. Without the restored funding, the association warned, mandatory counseling could become less accessible and affordable for seniors, creating obstacles to loan closings and limiting access to the federally insured reverse mortgage program that enables older homeowners to tap home equity for aging‑in‑place needs and financial security. NRMLA represents more than 300 member companies and over 2,000 delegates, which together originate more than 90 % of reverse mortgages, underscoring the broad industry stake in preserving the counseling component of the HECM program.
The appeal to congressional leaders is framed as a plea to preserve a critical housing‑finance option for seniors, with Irwin urging “the necessary action to restore the appropriated HUD housing counseling funds so that eligible seniors may continue to benefit from the HECM program.” The letter’s timing follows broader industry concerns, including unrelated reports that top‑five lender CrossCountry Mortgage has issued cease‑and‑desist letters to former loan officers and that mortgage inventory has fallen to 902,740 while spreads have risen, suggesting higher rates. These developments highlight the fragile context in which the NRMLA’s request is made, as reduced counseling capacity could exacerbate challenges faced by both lenders and senior borrowers in the current mortgage market.
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🌍World Economylow impact
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The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.6%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.2%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 1.3% with inflation at 3.3%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.3%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.4% with inflation at 2.4%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 8.4%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at -0.5% with inflation at 8.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6.5%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at -3.9% with inflation at 4.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.