As we wait for HUD’s attorneys to resolve whether or not the housing Bill creates a single nation loan limit at $417,000 or $625,500, wouldn’t it be nice to see what the new loan limits might offer borrowers?Ibis created a reverse mortgage calculator for RMD readers to see what borrowers might qualify for with both of the possible loan limits. I ran a quick scenario for a 62 year old borrower who has no mortgage balance and a home worth $500,000:
| HECM CMTCurrent | HECM CMT w/ 417K Limit | HECM CMT w/ 625.5K Limit | |
| Available | |||
| After Fees | $205,834 | $239,973 | $290,321 |
Remember, Ibis has designed this calculator to help lenders determine if a client may be better off by waiting until the new limits become known and available and should not be used for any marketing. Ibis cautions you not to misuse these ‘hypothetical’ calculators. Updated post and calculator here.
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Too many lenders already advertising the new limits. NRMLA should crack-down as they said they would on these lenders. Its only creating confusion at this time.
David,
I agree with you. There still could be a chance it could change!
The Great American Philosopher
http://www.thegreatamericanphilosopher.com
BY: John A. Smaldone, johnsmaldone@charter.net
New program is based on CMT 150 NOT 175
David:
It’s not just that the regulators and comittes may change some things…..butNRMLA has imparted the new rules in the strictist way…..and ifthey see this and don’t crack down on those lenders (who are easy to find because of their advertising) then NRMLA will get the reputation as only a paper tiger. Not good for our business. NRMLA has to support what they say; just as HUD/FHA must,
Tom: Fannie has quit buying the CMT 150; so now the assumptions in the samples are outdated.
But in a face to face meeting, I don’t see any harm in using the examples , As Examples only, of what we think is possible. But I wouldn’t send out an AD, or fliers just yet.
Francella