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Existing reverse mortgage products will be combined under new HUD proposal..

Written by Clay S. on . Posted in HECM, reverse mortgage

Result will be a more conservative offering designed to ensure the long-term health of the reverse mortgage program.

Although details are yet to come, HUD is planning to combine the standard and saver HECM reverse mortgage programs into a new offering. The new product will have principal limit factors somewhere between the current saver and standard programs.  Also, the new product will have new mortgage insurance premiums that vary based on the amount drawn up front with 60% limit. Only borrowers with mandatory obligations will be allowed to exceed that threshold. What that means is those wishing to pay off a mortgage or purchase a home can draw more than a borrower simply wanting to take a large lump sum mortgage. Details are expected from HUD within the next two weeks and those changes should be implemented by October 1, 2013 http://reversemortgagedaily.com/2013/08/19/hud-to-combine-existing-reverse-mortgage-products

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