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. …

Reverse Mortgage Policy Changes Increase Principal Limits and Protect Non-Borrowing Spouses

If you have been considering accessing the equity in your home with a Home Equity Conversion Mortgage (HECM) loan, now may be a great time to act. A recent policy change may mean that you can qualify for more loan proceeds. HUD recently released Mortgagee Letter 2014-12 which included new Principal Limits Factors (PLF) for non-borrowing spouses under …

HUD to Eliminate The Fixed Rate Standard Reverse Mortgage

After much speculation, HUD announced the future elimination date of the Fixed Rate Standard Home Equity Conversion Mortgage (HECM). For new case numbers assigned on or after April 1, 2013, any homeowner seeking a fixed rate reverse mortgage will be limited to the Fixed Rate Saver Program. HUD also notes that all fixed rate standard loans must …

Reverse Mortgages Have 2 Notes and 2 Deeds of Trust

When it comes to signing final reverse mortgage loan documents, borrowers are often concerned when the notary presents them with two Deeds of Trust (or mortgages, depending on the location of the property) and a First and Second Note. To further complicate it, the Deed of Trust shows an amount much higher than anticipated and …

Using a Reverse Mortgage To Pay For In-Home Care

As the cost of long-term care continues to rise, many people are turning to in-home care as a less expensive alternative to moving into a retirement community. A recent study from Genworth Financial found the median monthly cost of an assisted living facility is $3,300 and has increased 6% since 2011. In contrast, the national …

Reverse Mortgage Financial Assessment

A hallmark of the reverse mortgage program is that historically, it hasn’t included any credit or income requirements for the borrower. But that may change, and some lenders have already implemented—and then revoked—guidelines determining applicants’ eligibility for this type of loan. Reverse mortgage financial assessment stems from ongoing discussion about ways to protect HECM borrowers from …