AARP

AARP Files Suit Against HUD for RM Policies 

On behalf of three surviving spouses of reverse mortgage borrowers, AARP Foundation filed a lawsuit Tuesday against the Department of Housing and Urban Development (HUD) alleging that unfair rules and confusing policies have forced many older Americans into foreclosure. Pointing to a redefining of "non-recourse," specifically as it relates to non-borrowing spouses as detailed in Mortgagee Letter 2008-38, the suit claims that HUD rules in place since 1989 clearly stated that the borrower or their heirs could never owe more than the home is worth at the time of repayment.  The clarification in 2008 stated that should the surviving