Bank of America announced this morning that it is resuming offering fixed-rate reverse mortgage loans in Illinois. The decision comes after Bank of America has reviewed its policies relative to Illinois’ High Risk Home Loan Act (HRHLA) and determined that the loans can be offered as long as they meet the following criteria:
- Closing costs, defined as all costs paid by the borrower directly or indirectly, do not exceed 5% of the total loan amount.
- Bank of America’s high cost worksheet must be completed.
- Bank of America’s high cost worksheet must be submitted to fulfillment and indicate that the loan has “passed” the high cost test.
Says the letter, “Bank of America stands behind its commitment to provide clarity and transparency to home lending. To that end, we have chosen not to engage in the production of high cost loans.” Bank of America also announced that loans declined when the product was suspended September 16th can now be re-submitted for approval. The decision should come as welcome news to reverse mortgage lenders in Illinois.
