Reverse Mortgage Information: SUBJECT: Home Equity Conversion Mortgage (HECM) – Principal Limit Factors (Lower Loan To Values on Reverse Mortgages effective October 1, 2009)

SUBJECT: Home Equity Conversion Mortgage (HECM) – Principal Limit Factors (Lower Loan To Values on Reverse Mortgages effective October 1, 2009)

HUD Mortgagee Letter

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.

 

3 comments • Deborah Nance - Corona Reverse Mortgage Professional - Riverside County • September 23 2009 05:23PM

Comments

thanks so much fo rthe information, the reverse mortgage is very interesting program.

Posted by Melissa Polce (Keller Williams) 11 months ago

Thank you for the info, I juts saw the letter from Genworth as well, I am having a hard time finding the new table though.

Posted by Dan Pena (Arbor Mortgage Group) 11 months ago

It means a lot less business as existing homeowners and refinances will qualify for significantly less or not at all.  This is terrible.

Posted by Steve Johnson 11 months ago

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