The Department of HUD just issued Mortgagee Letter 2009-34 which effectively cuts by about 10% the amount of fund available to senior homeowners who wish to obtain a reverse mortgage. This will effect all new reverse mortgage loan applications that do not have a case number issued prior to October1.
How this impacts my realtor friends here in the Inland Empire is that any senior homebuyers interested in using a (HECM) Reverse Mortgage for Purchase will now have to put about 10% more down.
Here is the link to the mortgagee letter: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-34ml.doc
Deborah Nance, Reverse Mortgage Professional for Corona, the Inland Empire and Southern Californa.
