We will provide continuous updates of government changes to the FHA
Home Equity Conversion Mortgage Program and the Fannie Mae Home Keeper
program for consumer and media education. Other reverse mortgage
proprietary or jumbo programs may also have verified information under
this topic or found under Featured Advisors.
Click here for FHA HECM Mortgagee Letters.
Click here for Fannie Mae Lender Announcement Letters.
Important FHA HECM Reverse Mortgage Program Update
*The Housing and Economic Recovery Act of 2008
The new bill signed into law (July 2008) modernizes the FHA HECM Reverse
Mortgage loan program with several important provisions. Some of those
provisions are; an increase in the HECM lending limits by county, re-defining
and lowering origination fees to obtain a reverse mortgage loan, allowing
for co-op housing, an introduction of the HECM reverse mortgage program to
purchase a home and program protections to prohibit the purchase of certain
financial products as a condition to obtain a reverse mortgage loan. Overall
the higher lending limits with lower origination fees charged by the lenders
will result in a more favorable program for senior borrowers. Although these
changes have been signed into law, we await the specific interpretations of
how they will be defined and applied to the HECM Reverse Mortgage loan program.
ReverseAmerica.info has included some of these approved changes into our web
site and we await the others to be defined.
