The lending limit for federally-backed reverse mortgages is increasing for the third consecutive year in a row and is set to rise to $726,525 in 2019. The Department of Housing and Urban Development (HUD) announced on Friday via Mortgagee Letter 2018-12 a maximum claim amount of $726,525 for calendar year 2019, up from $679,650 in […]
Category: FHA
The Federal Housing Administration (FHA) announced today that as of Friday November 30, 2018, the protocols governing new second appraisal requirements for Home Equity Conversion Mortgages (HECMs) will become fully automated. The HECM second appraisal rule was first announced on September 28 in Mortgagee Letter 18-06, which outlined a series of procedures deployed on an […]
The Federal Housing Administration is discontinuing paper documentation and moving to email for two parts of the user ID assignment process for application coordinators. Both changes will be effective November 9. Under one change, mortgagees’ chief executive officers will begin being notified via email when an employee has been assigned a new user id. The […]
In an effort to illustrate the impacts of the latest reverse mortgage program changes, Federal Housing Administration officials presented supporting data at the the annual National Reverse Mortgage Lenders’ Association conference in San Diego last week. For the past 13 months, the reverse mortgage industry has been adjusting to lower principal limit factors and higher […]
In an effort to streamline the Home Equity Conversion Mortgage claim payment process, the Federal Housing Administration announced Monday that it has updated requirements for servicers assigning loans back to the FHA for processing. Effective upon release, Mortgagee Letter 2018-08 gives FHA-approved servicers more alternatives when it comes to required supporting documentation for their loans […]
To help clarify the latest changes to the Home Equity Conversion Mortgage appraisal process, the Federal Housing Authority has published new Frequently Asked Questions to help make the transition smoother. The FAQs touch on the expected time frames, property-flipping cases, financing, and other guidance around the new appraisal rule. This newest appraisal change put forth […]
Just days after Arizona’s Sun City community announced that its residents could begin obtaining Home Equity Conversion Mortgages, more Sun City 55-and-over communities have gotten the reverse mortgage green light. Originator Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Ariz., said he received a lender alert from Reverse Mortgage Funding on […]
After more than two years of waiting, residents at the Sun City retirement community in Arizona can once again open Home Equity Conversion Mortgages thanks to a new approval from the the Department of Housing and Urban Development. Michael Thomas, a reverse mortgage specialist with V.I.P Mortgage, Inc. in Peoria, Ariz., said he received word from his […]
In a message to its members Tuesday, the National Reverse Mortgage Lenders Association’s co-chairs reiterated the trade group’s support of the latest changes to the Home Equity Conversion Mortgage appraisal process — a shift designed to stop losses to the Mutual Mortgage Insurance fund. Written by leaders Joseph DeMarkey, the strategic business development leader of […]
After the changes to the Home Equity Conversion Mortgage’s appraisal process took effect earlier this week, reverse mortgage professionals are anticipating what they might mean to the industry. Last week, the Federal Housing Administration announced that all HECM appraisals will be subject to a proprietary collateral risk assessment. If the results suggest the first appraisal […]
