I’ve received dozens of emails from RMD readers asking about the status of the HECM loan limits but I haven’t had any updates. Yesterday I was forwarded a letter that was mailed out by California Senator Barbara Boxer regarding the HECM loan limits (thanks Heather). According to Senator Boxer, the HECM loan limit has been increased to $625,000. Below is the 1st paragraph from the letter.
Thank you for contacting my office to express your views on Home Equity Conversion Mortgages (HECMs), reverse mortgages backed by the Federal Housing Authority (FHA). As you may know, previous legislation increased the size of the loans the FHA could offer but failed to raise the limit for HECMs. I am pleased to report that the Housing and Economic Recovery Act of 2008 – which passed Congress and was signed into law on July 30, 2008 – permanently raises the HECM loan limit to $625,000.
– Senator Barbara Boxer
I’m not saying that this is final and I wouldn’t be surprised if HUD’s lawyers are still working on this… but maybe we are getting closer to a decision? Click the link below to read a copy of the letter from Ms. Boxer.
Update: NRMLA just informed me that Senator Feinstein, also from California sent out a letter that stating that $417,000 is the new HECM loan limit… great to see California’s Senators are on the same page. Bottom line, HUD has not yet made a decision.