[Updated] Reverse Mortgage Lending Limit Rises to Over $822k in 2021

The lending limit for federally-backed reverse mortgages is increasing for the fifth consecutive year in a row, set to hit $822,375 in 2021. The Department of Housing and Urban Development (HUD) announced on Wednesday via Mortgagee Letter (ML) 2020-42 a maximum claim amount of $822,375 for calendar year 2021, a rise of $56,775 from the […]

FHFA Increases Conforming Loan Limits for Fannie, Freddie in 2021

The Federal Housing Finance Agency (FHFA) announced on Wednesday that it would be increasing the conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for the fifth consecutive year. In most of the United States, the maximum conforming loan limit for one-unit properties in 2021 will be $548,250, an increase […]

November Election Results Could Impact Key Reverse Mortgage Issues in 2021

The results from the November general election in the United States could have notable impacts on key issues relevant to the reverse mortgage industry including the selection of a new servicing contract for the Federal Housing Administration (FHA), the legislative priorities of the White House and Congress as it relates to matters of housing, the […]

HUD Secretary Carson Back to Work After COVID-19 Illness

Secretary for the U.S. Department of Housing and Urban Development (HUD) Dr. Ben Carson is said to be recovering after contracting the COVID-19 coronavirus, describing himself as having become “desperately ill” with the disease before coming “out of the woods” according to a Facebook post made by the secretary on behalf of him and his […]

FHA: Reverse Mortgage Servicing Contract ‘In-Process,’ Agency Eyes Smooth LIBOR Transition

The Federal Housing Administration (FHA) is continuing to seek a new servicing contract for Home Equity Conversion Mortgages (HECMs) sponsored by the federal government, but the agency remains dedicated to providing as much additional relief as possible to reverse mortgage borrowers that have been impacted by the COVID-19 coronavirus pandemic. This is according to Kasey […]

FHA’s Proposal for Private Flood Insurance Applies to Reverse Mortgages

The Federal Housing Administration (FHA) last week released a proposed rule which would allow a private flood insurance option instead of insurance through the National Flood Insurance Program (NFIP), when flood insurance is required by FHA. This is a change that would potentially apply to all single family mortgage programs under FHA, including the Home […]

FHA: Reverse Mortgage Performance Improves as Data Shows Borrower Preferences Change

The Home Equity Conversion Mortgage (HECM) program has seen a general increase in activity over the course of fiscal year 2020, though some of that increase can be attributed to higher levels of refinance transactions and unique components of the mortgage market observed during the COVID-19 pandemic. A longer view also shows some interesting shifts […]

New York Times: 5 Possible Candidates for Biden’s HUD Secretary

One of the many consequences that come with a presidential transition is that all of the associated administration personnel leave office with the president that they serve under, as will be the case with the incumbent Secretary of the U.S. Department of Housing and Urban Development (HUD) Dr. Ben Carson. While Carson at different points […]

[Updated] 2020 MMI Report: Improved FHA Reverse Mortgage Portfolio, Though Still Negative

The reverse mortgage portion of the Federal Housing Administration’s Mutual Mortgage Insurance Fund (MMIF) continues to stand at a negative capital ratio on the overall government-backed portfolio, according to an annual actuarial review of the fund’s finances released Friday morning. However, its negative value over the past year has been almost entirely diminished, sitting at […]

FHA Deputy Assistant Secretary of Single Family Housing Talks HECM Plans for 2021

The Federal Housing Administration (FHA) has risen to the occasion in responding to the impacts of the COVID-19 coronavirus pandemic, and has a series of key priorities for the Home Equity Conversion Mortgage (HECM) program that it is aiming to pursue in 2021 related to greater incorporation of technology, and further completing the 4000.1 policy […]