It’s official, yesterday Fannie Mae started purchasing reverse mortgages with the new HECM loan limit of $625,500. The new loan limit is effective for loans in 2009 and will remain in effect until December 31, 2009.
Fannie Mae also provided a timeline for lenders to obtain FHA insurance for HECMs. According to the alert, effective April 1, 2009, Fannie Mae determines “timely manner” to mean 120 days from loan closing. If a lender fails to obtain FHA insurance within 120 days, the lender may be required to repurchase the mortgage and make Fannie Mae whole for any losses suffered. In addition, Fannie Mae may suspend or terminate the lender’s authority to deliver the following:
- mortgages for which it has not already received the government mortgage guaranty or insurance
- any government mortgage or any particular category of government mortgage, or
- any mortgage
To read more about these changes check out the link below.