The Senate recently passed HR 3221 and the President signed the bill into law effective immediately.

Once HUD issues a Mortgagee Letter, we are hoping to see the current lending limit of FHA per county to go to $417,000 and higher for high cost areas.

In addition to the higher loan amount, we are excited about a HECM for purchase product. This will allow seniors to purchase a home with a reverse mortgage.

Reduced origination fees of 2% on the initial $200,000 of maximum claim amount and 1% on the balance thereafter with a cap of $6,000.

More protection to the senior with prohibitions on requiring the purchase of annuities and other financial products, along with restrictions around cross selling of financial products.

Many feel the FHA HECM product will take approximately 60 -90 days to implement.

This is good news for the industry and for our senior population. As always, if you have any questions, please don’t hesitate to contact me.

720.641.3482

This entry was posted on Tuesday, August 5th, 2008 at 10:39 am and is filed under Colorado Reverse Mortgage, Reverse Mortgages USA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.