Christine Jensen, Fairway Home Lending’s senior vice president of reverse lending for the Central Region North, is urging HUD to reconsider several HECM rules. In a HousingWire interview published October 5, 2026, she proposed a lower upfront mortgage insurance premium, more flexibility in using secured borrowed funds for a HECM for Purchase, and fewer second appraisals where other valuation tools provide enough support. These are Jensen’s policy recommendations—not announced or scheduled HUD changes.
What Jensen wants HUD to change
Jensen’s proposals focus on the upfront cost of a Home Equity Conversion Mortgage (HECM), how a home purchase can be financed, and when a lender must obtain a second appraisal. Her interview presents arguments for reform; it does not establish that HUD is considering, approving, or implementing any of them.
Lower the HECM upfront mortgage insurance premium
Jensen recalls an earlier choice between HECM “Super Saver” and standard structures, with a lower upfront premium associated with the lower-draw option. She argues that borrowers who take less initially should be able to access a lower upfront premium. Her proposed target was to reduce the cost to 25% of its current level—a 75% reduction, not a 25% reduction.
The current baseline in HUD’s 2025 actuarial review is different: HUD says the upfront mortgage insurance premium (MIP) was standardized effective October 2017 at 2% of the maximum claim amount, regardless of how much a borrower draws in year one. HUD also reduced the annual MIP to 0.50% of the outstanding balance. The 2% is calculated on the maximum claim amount; it is not automatically 2% of the home’s full value. These are HECM insurance charges, not Jensen’s proposed new terms.
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Allow more flexibility with secured funds for HECM for Purchase
Jensen says a forward FHA mortgage borrower can use some secured borrowed funds, such as bridge-loan proceeds, toward a down payment, while HUD does not permit that source for HECM for Purchase. She argues that the difference can steer some would-be HECM borrowers toward a forward loan with required monthly payments.
That comparison is Jensen’s account, not a fully verified statement of the current rules for both transaction types. HUD’s handbook establishes HECM for Purchase as a program for buying a one- to four-unit principal residence, but the material reviewed here does not resolve every rule governing which borrowed funds may be used in each transaction.
Reconsider when a second appraisal is required
HUD’s handbook says a second appraisal is required when a collateral-risk assessment determines that additional support for the home’s value is needed. When a second appraisal is required, the lower of the two appraised values is used to determine the maximum claim amount.
Jensen argues that valuation models and desk reviews could make some second appraisals unnecessary, and says the extra step adds time and expense. She also characterizes any account of the specific trigger as an industry guess because HUD does not disclose its algorithm. That is her explanation, not a disclosed description of HUD’s scoring method; the rule itself is that a second appraisal is required when the risk assessment calls for more support.
How HECMs and proprietary reverse mortgages differ
A HECM is an FHA-insured reverse mortgage subject to HUD program rules. Jensen says proprietary reverse mortgage providers have responded to some borrower demand with alternatives that do not carry the HECM’s 2% upfront MIP. She named Longbridge Financial, Finance of America, and SmartFi Home Loans in the interview. Her remarks do not establish each company’s current product availability, fees, rates, eligibility rules, or suitability, and proprietary loans should not be treated as interchangeable with FHA-insured HECMs.
| Question | HECM | Proprietary reverse mortgage |
|---|---|---|
| Insurance and oversight | FHA-insured and governed by HUD program rules. | Not an FHA-insured HECM; terms depend on the lender and product. |
| Upfront HECM MIP | HUD’s 2025 actuarial review describes a 2% premium on the maximum claim amount, effective October 2017. | Jensen says the named alternatives do not have the 2% upfront HECM MIP; current charges for each product are not established by the interview. |
| Current product-level rates, costs, eligibility, and protections | Consult HUD program requirements and a lender’s current offer. | Not stated for the named providers in the interview; request and compare each lender’s current terms. |
For an actual comparison, examine total closing costs and insurance charges, interest rate and balance accrual, draw limits and timing, borrower-age and property requirements, repayment triggers and protections, servicing, and availability in your state. A missing HECM insurance charge alone does not show that another loan has a lower total cost.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains true for HECM borrowers
A reverse mortgage does not remove the borrower’s ongoing homeowner obligations. HUD borrower guidance says HECM borrowers must meet occupancy terms and keep required property taxes and homeowners insurance current.
HUD lists a maximum claim amount of $1,249,125 for applicable 2026 HECM case numbers. This is a program ceiling used in loan calculations, not a loan amount every borrower can receive. An individual’s available proceeds depend on the applicable program calculations and circumstances.
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What the interview does—and does not—establish
Jensen’s case for reform is partly about how homeowners use housing wealth in retirement. She asked, “What if, rather than draining the portfolio first and then using the equity in the house as the last asset, what if we put the equity in the house more in the forefront and use it judiciously in the beginning?” That is a planning approach she advocates, not a finding that a reverse mortgage will preserve investments or suit a particular household.
The interview was lightly edited for length and clarity. Jensen’s views come from a lender executive whose business includes reverse lending; they should be read as advocacy, not as a HUD announcement or individualized financial advice. The sources cited here do not provide an independent statistic measuring how common reverse-mortgage misconceptions are or quantify the likely effects of her proposals.
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