Yesterday HUD published two new documents regarding the HECM for purchase and new mortgage limits to help clarify the changes.  The HECM for purchase document is a Q&A with 25 questions and the mortgage limits document includes a table displaying the loan limit and origination fee changes. A quick look through the questions and here [...]

Yesterday HUD published Mortgagee Letter 08-34 which established the new origination fee limit that may be charged for a HECM.  According to the ML, all HECMs where the FHA case number is assigned on or after the date of this mortgagee letter, the loan origination fee limit will be the greater of $2,500 or two [...]

Today HUD published Mortgagee Letter 08-35 which establishes a new national loan limit of $417,000 for all HECM loans.  According to the ML, lenders must use the new national mortgage limit and calculate the loan origination fee using limitations established by HERA, and new policy guidance issued by FHA, when re-calculating HECM loans that did [...]

Today HUD published Mortgagee Letter 08-33 which establishes the HECM for purchase program.  FHA insured HECMs can now be used to purchase a principle residence (1- to 4-family dwelling unit) with the loan proceeds as long as the FHA case number is assigned on or after January 1, 2009.  According to the ML, the Federal [...]

Earlier this year the Delaware General Assembly approved H.B. 475 which requires an independent housing counselor to provide a written certification that a borrower has received counseling for a reverse mortgage loan prior to closing.  The law which went into effect earlier this month also permits lenders to charge for things like an application fee, [...]

With the new HECM loan limits “target date” of November 1st rapidly approaching, I’m starting to think the Mortgagee Letters are just a couple days away.  HUD has already updated FHA Connection and their website to reflect the new nationwide loan limit of $417,000, so we have got to be close. If you head over [...]