REVERSE MORTGAGES LIMIT RISES

Oct 29th 2008

Related Posts: Credit & Finance, Government

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On Nov. 1, the limit on FHA-backed reverse mortgages, dubbed Home Equity Conversion Mortgages (HECMs), rises to $417,000 nationwide. The new rules will institute a 2-percent cap on origination fees for the first $200,000 of the loan amount or a 1-percent ceiling for higher amounts, with a $6,000 inflation-adjustable limit. Additionally, seniors will be allowed to use such loans to purchase a new property and extract equity from co-operative properties, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.

Source: Christian Science Monitor, Margaret Price (10/27/08)
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