Saturday, February 5, 2011

A new lending pinch, in lovely bureaucratese

The Palm Beach Post reports HUD is feeling pressure, and imposing it on lenders, to collect taxes and insurance more strictly from reverse mortgage holders -- which some fear could produce heavier pressure on household finances and greater foreclosure dangers. I think the article is talking about Mortgagee Letter 11-01 (attachments readable here).

As suits an instruction telling loan officials to collect more money from financially unsteady old people, this letter has a lovely brain-muddying freighttrain of a title:
SUBJECT: Home Equity Conversion Mortgage Property Charge Loss Mitigation
That's nine consecutive nouns. No kidding.

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