The initial first month cash draw for the HECM Standard far surpasses the first month cash draw for HECM Saver loans, a recent chart created by the Department of Housing and Urban Development depicts.
With the saver first month draw at 46.4% of the initial principal limit and at 80.8% for Standard loans, the comparison is stark.
Of all Saver loans, more than 85% are adjustable rate loans. For the Standard loans, the percentage skews toward the fixed rate variety at around 67% for 2011 to date, HUD data showed.
The initial principal limit draw data first appeared in a presentation by HUD’s Karin Hill, director of the Office of Single Family Program Development, before attendees of the Texas Mortgage Bankers Association Reverse Mortgage Day in Houston in early September.
Written by Elizabeth Ecker