Earlier this week, President Obama signed the $787 billion American Recovery and Reinvestment Act, which raises the national loan limit for HECMs to 150% of the Freddie Mac Loan limit or $625,500. The higher limit is for the remainder of 2009 only, in order for it to be extended it would have to go back to Congress for approval.
Below is a video from President Obama where he talks about implementing the American Recovery and Reinvestment Act and how they’re using Recovery.gov.
I know everyone is wondering, when will the higher loan limits be implemented? HUD will have to issue a mortgagee letter before the increase goes into effect. "It should be within the next few days, probably early next week," said HUD spokesman Lemar Wooley in an email to RMD.
The National Reverse Mortgage Lenders Association is working with HUD on the timing for issuing the Mortgagee Letter and has more details on how the stimulus bill will be implemented. Check out their website for more information.