Reverse Mortgage Update

First and foremost, the Economic Stimulus Package has taken priority over the FHA Modernization Act in Congress. It appears the stimulus package is what the government feels will help keep the country from going into recession and thus should be put into effect quickly. The bill for the Economic Stimulus Package was signed into law on February 13, 2008. HUD has 30 days from the day the president signed the package into law to identify the impacted Metropolitan Statistical areas.

How Will the Economic Stimulus Package Affect the Reverse Mortgage?
Both FHA and Fannie Mae are saying their reverse mortgage products will not be included in the Economic Stimulus Package for loan amount increases.

Will the FHA Modernization Act Affect the Reverse Mortgage Lending Limits?
We hope so. The Act has included a loan limit increase across the board to $417,000 vs. the individual county loan limits now in place. The bill still needs to be passed by Congress before it can go into effect.

If you have any questions regarding a reverse mortgage, I can be reached at 720.641.3482 or e-mail me at bartonkaren@comcast.net.

What should happen at your reverse mortgage closing?

Before you go to closing, your Loan Officer should have given you a copy of the closing documents for the state you live in. If you did not receive this for your review, you should request them.

Another document you should receive before attending your closing is a copy of the final HUD Settlement form. This will give you the actual charges being assessed for your reverse mortgage loan. It should be close to the Good Faith Estimate you received at application. If it isn’t, this would be a good time to question your Loan Officer on the differences. You can still back away from the loan at this point if you are not comfortable with the responses to your questions or concerns about the differences in charges. You should receive this form at least 24 hours before closing.

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Do you want to know how much you could qualify for with a reverse mortgage? AARP’s web site has a consumer friendly reverse mortgage loan calculator. Click on the following link to determine whether or not you can qualify and if so, what funds might be available to you.

AARP Reverse Mortgage Calculator

Call me anytime for additional information about the reverse mortgage calculator … I can be reached at 720.641.3482.