No Word From HUD Regarding New Reverse Mortgage Loan Limits

October 1st, 2008 | by John Yedinak Published in FHA, Gov. Updates, News, Reverse Mortgage | 7 Comments

Today was the day that many hoped HUD would announce the new HECM loan limits but unfortunately it doesn’t look it’s happening. While I’m not trying to be overly optimistic about when it will happen, I’m thinking we could hear something by the end of the week…why?

The Mortgage Bankers Association is hosting their Fall Reverse Mortgage Lending Conference in Miami and guess who will be partying it up in South Beach the next two days?

The Honorable Brian D. Montgomery – Honorable is the MBA’s words… not mine.
Assistant Secretary for Housing / Federal Housing Commissioner (FHA)
U.S. Department of Housing and Urban Development (HUD)

Meg Burns
Director of the Office of Single Family Program Development
Federal Housing Administration

Both are scheduled to speak tomorrow, so why not announce the new loan limits at the conference? If I was Meg Burns, there is no way I would attend a reverse mortgage conference right now and not have any updates on the housing Bill. I’ve gotten at least 30 emails today from RMD readers asking about it so I can only imagine the amount of emails and phone calls she has gotten.

This is total speculation on my part but you never know right?

Technorati Tags: Reverse Mortgage,News,HECM,FHA,HUD,Housing Bill,Mortgage,Mortgage Bankers Association

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http://www.thegreatamericanphilosopher.com The Great American Philosopher

Good Day,

All I can say in reply is that by not having the limit increased by October 1, 2008, many seniors are being effected in a negative way. Many seniors today that own homes that are valued well over the present limits are facing serious consequences. The consequences I am referring to are those seniors delinquent on their loans and some facing foreclosures. These seniors have been counting on the increase, no one from HUD has announced the limit would not take effect on the first. HUD has not even made a statement when we could expect the limit increase. It is sad and unacceptable.

I am calling on the REVERSE MORTGAGE DAILY POST to organize a petition along with a letter to send to HUD, demanding the limit increase be imposed quickly! The Reverse Mortgage Daily Post should be instrumental in taking these positions for its subscribers, show us you can do more than publish news reports. I challenge the editor to stand up for us and honor my request.

Sincerely,

The Great American Philosopher

http://www.thegreatamericanphilosopher.com

SPONSORED BY: John A. Smaldone
Gloria

I know why I want to know the new loan limits…because the bill called for the changes to the HECM to go into effect on October 1, 2008 causing a great deal of expectations by would-be borrowers.

I have two desperate clients now, conned into lousy 2/28′s with payments that went from approximately $1700 a month and are not at $3700 a month, and they don’t want to see their homes lost, but can’t keep up these horrendous payments much longer. No, they weren’t stupid or greedy when they got the 2/28′s but each had great need ranging from death, to losing their jobs and health.

And, as for the origination fees — if you do your job, and help these elderly borrowers, the fees you earn will be just fine; scrapping for every last penny in a commission is personally demeaning. Just do the job, well. And you’ll earn enough.
http://www.gorhamsavingsbank.com MH in Maine

November 1, 2008, has been stated as the “target” date, not the actual effective date by FHA Commish Montgomery. Have your senior borrowers hang in for a few more weeks, if possible.
Gloria

I don’t understand why we can’t go ahead and adjust the computer program amount to $417,000, since anyone starting the mortgage process now would most likely not be ready until 11-1-2008…or the submission could be held-up until the “target date”.

What in the world do they mean by a “target date” ? Are they not ready to accept the loans of $417,000; the date was supposed to be 10-1. without any target date.

What does anyone think of the possibiity of the $625,000 in high-cost areas coming about?
http://www.gorhamsavingsbank.com MH in Maine

Adjusting the software to $417K today would affect those RMs closing/funding prior to the “effective” date.
Gloriaboone

(Tell wordpress, this is a new message)
I don’t understand why we can’t go ahead and adjust the computer program amount to $417,000, since anyone starting the mortgage process now would most likely not be ready until 11-1-2008…or the submission could be held-up until the “target date”.

What in the world do they mean by a “target date” ? Are they not ready to accept the loans of $417,000; the date was supposed to be 10-1. without any target date.

What does anyone think of the possibiity of the $625,000 in high-cost areas coming about?
Sandra

(Tell wordpress, this is a new message)
I don’t understand why we can’t go ahead and adjust the computer program amount to $417,000, since anyone starting the mortgage process now would most likely not be ready until 11-1-2008…or the submission could be held-up until the “target date”.

What in the world do they mean by a “target date” ? Are they not ready to accept the loans of $417,000; the date was supposed to be 10-1. without any target date.

What does anyone think of the possibiity of the $625,000 in high-cost areas coming about?

No Word From HUD Regarding New Reverse Mortgage Loan Limits

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