According to the most recent FHA Outlook report, HUD is predicting that the reverse mortgage industry will endorse 210,000 HECMs in Fiscal Year 2009. The prediction is 97,846 endorsements higher than the FY 2008 volume from the report. FHA’s Outlook report shows a semi-monthly statistical summary of application insurance endorsement, delinquency and claim information on […]
Category: FHA
The Department of Housing and Urban Development recently published a new FAQ document for servicing questions related to HECMs. The FAQ includes 12 different questions that cover a range of topics. It’s good to see HUD taking a proactive approach to addressing questions through its website. I’ve listed a couple of the questions below, to […]
Today the Department of Housing and Urban Development published Mortgagee Letter 2008-38 to provide further clarification regarding the requirements for repayment of Home Equity Conversion Mortgages (HECMs) and for termination of a HECM mortgage. HUD’s Handbook 4235.1 REV-1, Home Equity Conversion Mortgages, provides in Paragraph 1-3C, that: The HECM is a “non-recourse loan”. This means […]
I know that there are plenty of people who wish the Federal Housing Administration would lower the 2% upfront premium for HECMs, but it doesn’t look like it will happen anytime soon. Yesterday, the Wall Street Journal published an article about how the latest annual audit of FHA shows a steep drop in the capital […]
HeraldNet writer Tom Kelly does a great job covering reverse mortgages. His most recent article, Even now, reverse mortgages a viable option describes how even with the credit crunch, the reverse mortgage industry grew for the 19th straight year. While the 4.3 percent growth in HECM volume isn’t close to what the industry has seen […]
Yesterday HUD published two new documents regarding the HECM for purchase and new mortgage limits to help clarify the changes. The HECM for purchase document is a Q&A with 25 questions and the mortgage limits document includes a table displaying the loan limit and origination fee changes. A quick look through the questions and here […]
Yesterday HUD published Mortgagee Letter 08-34 which established the new origination fee limit that may be charged for a HECM. According to the ML, all HECMs where the FHA case number is assigned on or after the date of this mortgagee letter, the loan origination fee limit will be the greater of $2,500 or two […]
Today HUD published Mortgagee Letter 08-35 which establishes a new national loan limit of $417,000 for all HECM loans. According to the ML, lenders must use the new national mortgage limit and calculate the loan origination fee using limitations established by HERA, and new policy guidance issued by FHA, when re-calculating HECM loans that did […]
Looking to run a scenario for your borrowers interested in the HECM for purchase program? Ibis has created a calculator that can be used by lenders, consumers, real estate agents and home builders. Right now there is a complex and a simple form to run scenarios. The complex form allows for the actual appraised value […]
Today HUD published Mortgagee Letter 08-33 which establishes the HECM for purchase program. FHA insured HECMs can now be used to purchase a principle residence (1- to 4-family dwelling unit) with the loan proceeds as long as the FHA case number is assigned on or after January 1, 2009. According to the ML, the Federal […]
