The Department of Housing and Urban Development is providing a webinar to discuss the new Home Equity Conversion Mortgage (HECM) Saver program on September 28, 20110.
Developed as a second reverse mortgage option, the purpose of Saver is to lower the upfront cost of reverse mortgages for homeowners who want to borrow a smaller amount compared to the traditional product.
“Despite the popularity of our HECM loan product, we have noted concerns that some senior citizens find that our fees are too high for them,” said FHA Commissioner David Stevens. “In response, we created HECM Saver which will provide seniors with a reverse mortgage option that significantly lowers costs by almost eliminating the upfront Mortgage Insurance Premium (MIP) that is required under the standard HECM option.”
HECM Saver will have an upfront premium of only .01 percent of the property’s value. Under the HECM Standard option, the upfront premium will remain at 2 percent. The MIP for both HECM Saver and HECM Standard will be charged monthly at an annual rate of 1.25 percent of the outstanding loan balance.
This option will be available for all HECM case numbers assigned on or after October 4, 2010.
The free webinar will also provide an overview of the FHA Connection enhancements to support sponsored organizations, including Sponsored Originator Maintenance page, key case processing changes, and B2G and TOTAL Scorecard modifications.
Sign up for the free webinar, here.