The National Reverse Mortgage Lenders Association (NRMLA) has approved and published guidance on the underwriting of property charges, such as property taxes and insurance, when making reverse mortgage loans. According to NRLMA attorney, Mr. James Brodsky, members are “encouraged” to follow NRLMA guidelines when making reverse mortgage loans, but are not required to do so. The guidance was issued after a special task force found that there was nothing that prohibited reverse mortgage loans from being underwritten with property tax and insurance charges included. The guidance issued recommends that NRLMA members take a look at a reverse mortgage applicant's ability, and desire, to pay taxes and insurance on property secured by reverse mortgage loans. Underwriters of reverse mortgage loans are encouraged to review an applicant's loan payment history and to make a factual determination of the applicant's initial principal requirements, in relationship the to overall principal limit of the reverse mortgage. The actions of NRLMA reflect the ongoing conversations between the reverse mortgage industry and the United States Department of Housing and Urban Development (HUD) about reverse mortgage loans defaulting due to tax and insurance delinquency.