2018 Reverse Mortgage Limit Increased to $679,650

For all HECM reverse mortgage loans origination on or after January,  2018, the reverse mortgage limit or maximum claim amount (MCA) for has increased from the prior limit of $636,150 to the new limit of $679,650, according to Mortgagee Letter 2017-17. The Mortgagee Letter was published December 7, 2017 by the Department of Housing and Urban Development. …

New Reverse Mortgage Rules Starting September 19, 2017

Reverse Mortgage Final Rule (HECM Final Rule) The purpose of this bulletin is to summarize the key changes to the HECM program in accordance with HUD’s Final HECM Rule. This bulletin summarizes the key changes affecting the origination of HECM loans. Additional guidance on how to implement and apply the below changes is forthcoming.

Oct. 2017 HUD to Lower Limits and Increase Costs

2017 HECM Changes In a move that shocked the entire reverse mortgage industry, HUD released Mortgagee Letter ML 2017-12, which will have a huge impact on the reverse mortgage program. The Mortgagee Letter indicates that in order for FHA to continue to endorse the HECM loan program, changes were needed which would increase the upfront Mortgage …

10 Questions To Know For Reverse Mortgage Counseling

An important and required step in obtaining a HECM reverse mortgage is going through an independent reverse mortgage counseling session. Did you know that the counselor must ask 10 questions throughout the session to make sure the senior understands the key elements of a reverse mortgage? It’s true. Counseling agents must determine the borrower’s level of comprehension of …

2017 Reverse Mortgage Limit Increased to $636,150

2017 HECM Loan Limits For 2017, the reverse mortgage limit or maximum claim amount (MCA) for FHA-insured Home Equity Conversion Mortgages (Reverse Mortgage) has increased from the prior limit of $625,500 to the new limit of $636,150, according to Mortgagee Letter 2016-19. The Mortgagee Letter was published December 2, 2016 by the Department of Housing and …

Lien Seasoning FAQ

To expand on our previous post about requirements for non-HECM lien seasoning, we have some frequently asked questions below: 1. If I took out a loan in the past 12 months but drew less than $500 at closing or through draws after closing, can the lien be paid off through closing? Yes.

Reverse Mortgage Seasoning Requirements (for Existing Non-HECM Mortgage Liens)

Change is in the air. Mortgagee Letter ML 2014-21 spelled out a few new changes to the HECM reverse mortgage program. The one change garnering all of the attention has been financial assessment, which starts 3/2/15, however the change to the reverse mortgage seasoning requirement deserves some attention as well and it begins much sooner; 12/15/14. Effective for case …

Reverse Mortgage Financial Assessment Begins March 2, 2015

After much anticipation, HUD has released guidance for reverse mortgage financial assessment. This new change will affect all borrowers whose case numbers are assigned on or after March 2, 2015. HUD states “the purpose of financial assessment is to evaluate a mortgagor’s willingness and ability to meet his/her financial obligations and to comply with the …