Reverse Mortgage Changes Coming

7 Jan

This is not news to those who follow reverse mortgage legislation.  Per Lender Alerts from reverse mortgage banks, the HECM Standard Fixed is due to be dropped from the menu of available reverse mortgage products as soon as sometime this month.

Currently, NRMLA statistics show, about 70% of all HECM loans originated are Standard Fixed.  The fixed rate reverse mortgage has only been around for a handful of years, but quickly became popular upon introduction, probably due to the rate-sensitivity of older borrowers.

The variable rate reverse mortgage will remain among the HECM offerings, as will the Fixed Saver loan.  Other changes expected from HUD will be a set-aside or escrow for property taxes and homeowner’s insurance, as well as a financial assessment.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: