Florida Reverse Mortgage Bill

Florida’s proposed reverse mortgage bill, SB 1532, passed the Florida Senate by a unanimous vote and now waits to be considered by the House of Representatives. The House version of the Bill, HB 845, is on the agenda to be reviewed by the Policy Committee on Friday.

More details will be posted here.

HUD Projects FHA Reverse Mortgage Volumes To Decrease In 2010

I think the projected volume is due the low appraisal values that are plaguing the industry.

According to a recently released report by the Department of Housing and Urban Development (HUD), the Federal Housing Administration is projecting that reverse mortgage endorsement volume will decline in 2010.  It would be the first year over year decline the industry has experienced in at least a decade. According to the report, FHA estimates the industry will endorse 106,875 HECMs during HUDs fiscal year 2010 which represent a 7% decline from endorsements in 2009.

To find out if an appraisal value will effect your Reverse Mortgage, simply call the help line at 1-888-823-6125.

HUD Lending Limits Extended for Reverse Mortgages

The US Department of Housing and Urban Development has finally officially extended the loan limits for its FHA insured reverse mortgage program with Mortgagee Letter 2009-50.

There was a risk that after the end of the year, Reverse Mortgage Loan limits may have been reduced back to the limit previously set at $417,000. The excellent news is that the the lending limit is now going to be extended for another year.

The current CR mandates that the revised FHA loan limits for 2010 are set at the higher of the loan limits established under the Economic Stimulus Act of 2008 (ESA) or those loan limits otherwise established for 2010 as amended by the Housing and Economic Recovery Act of 2008 (HERA).

Under provisions of the recent CR, the national FHA loan limit for the HECM program in 2010 remains at $625,500 (150 percent of the national conforming limit). In the special exception areas (AK/HI/GU/VI), the maximum claim amount on HECM mortgages is the same $625,500 limit as in all other areas. The loan limit shall be effective for all HECMs that have been assigned a FHA case number on or after the effective date of this Mortgagee Letter.

To read about the increase in lending limits, click here!