Program Update: There will only be the HECM after September 28th 2013. No more standard, no more saver. There will be an adjustable rate option and fixed rate option. We can also expect lending limit reductions of around 15% compared to the current Standard Program.
Initial Draws & MIP: FHA has also announced restricted 1st year draw schedules.
- Borrower can access up to 60% of the available principal limit in the first year, and have an initial MIP charge of 50 basis points.
- Borrower(s) can draw an additional 10% of the available limit for a total of 70%. If the borrower chooses this option than the initial MIP is 2.25%
- The borrower (s) can access up to 100% of the lending limit if the mandatory obligations, including closing cost, payoffs & liens require but the initial MIP would be 2.25%
- After 12 months variable rate HECM can access the remaining funds available up to the limit. There will be no subsequent draws for the fixed rate option
Dates to look out for:
Counseling: Counseling needs to be done prior to requesting a case number (so if you know anyone on the fence they better get moving). Case numbers need to be pulled prior to September 28th 2013. All saver and standard loans must close by 12/31/2013. There is the addition of financial assessments coming in January.
I'm thinking some of the recent HECM changes are an indication that improvement is not expected any time soon. That said some of the overall volume decrease may be offset by deteriorating conditions for Seniors and their families.
NEWS
[Poll] How Much Will New Reverse Mortgage Changes Impact Your Volume?
September 6th, 2013 | by Jason | published in News, Reverse Mortgage
Recently announced changes to the Home Equity Conversion Mortgage (HECM) program will be impactful on the reverse mortgage industry, according to Charles Coulter, assistant secretary for single family housing at the Department for Housing and Urban Development (HUD). During a teleconference Friday, HUD officials gave an overview of new changes to its HECM program, which […]
Webinar: Survivor’s Guide to Reverse Mortgage Changes
September 6th, 2013 | by Jason | published in News, Reverse Mortgage
Reverse Focus will hold a free webinar next Wednesday, September 11, to discuss program changes to the Home Equity Conversion Mortgage (HECM). Register now! HECM Program Changes: A Survivor’s Guide will bring together top industry leaders to share perspective and insight on various topics regarding the latest reverse mortgage changes.
Friday Round Up: HUD Unveils Reverse Mortgage Program Overhaul
September 6th, 2013 | by Alyssa | published in News, Reverse Mortgage
In case you missed it… here’s what happened in reverse mortgage news this week. HUD unveils major changes to its reverse mortgage program in mortgagee letters. The Department of Housing and Urban Development posted two long-awaited mortgagee letters on Tuesday announcing changes to federal reverse mortgage program, including consolidation of the HECM Standard and Saver programs […]
No comments:
Post a Comment