Skip To Content

Randy can answer your reverse mortgage loan questions.

Improving Lives and Fulfilling Dreams

News And Events

News

  • HUD Approves Single National Loan Limit

    HUD Approves Single National Loan Limit of $417,000 for Reverse Mortgage Program

    NRMLA NEWS RELEASE

    October 3, 2008

    Contact: Peter Bell, President, NRMLA, 202-939-1741, pbell@dworbell.com

    Darryl Hicks, Associate Director, NRMLA, 202-939-1784, dhicks@dworbell.com

    WASHINGTON, DC – The National Reverse Mortgage Lenders Association announced that the Department of Housing and Urban Development (HUD) approved a single national loan limit of $417,000 for federally insured Home Equity Conversion Mortgages (HECM).

    The new, higher lending limit will enable borrowers to obtain a substantially greater benefit from their homes, if the value is higher than the previous HUD limit. Previously, the HECM program assigned different lending limits by county ranging from $200,160 in rural areas to $362,790 in the highest home value areas.

    Similarly, existing borrowers whose home value is greater than the new HUD limit may be able to increase their benefit by refinancing their reverse mortgage and are encouraged to contact their lenders.

    To identify a reputable lender, Consumer Reports, in its October 2008 Money issue, recommends that seniors contact NRMLA members, who are required to sign a code of conduct and follow best practices for the treatment and counseling of seniors. NRMLA’s consumer site at www.reversemortgage.org provides users with a searchable database of NRMLA lenders in their local area.

    “HUD should be applauded for its expedient implementation of the single national loan limit for the HECM program, especially during such a tumultuous period,” said Peter Bell, president of NRMLA. “The higher single national loan limit and other provisions expected to be implemented in the coming months make reverse mortgages a more viable retirement financial option for a broader audience who can receive higher benefits at lower origination fees than ever before.”

    HUD is aiming for an effective date of November 1st, however the exact date will not be finalized until HUD issues a mortgagee letter on the new loan limit.

    A reverse mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home. Funds obtained from the reverse mortgage are tax-free.

    Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for up to life), or line of credit, or as a combination of monthly income and line of credit. No mortgage payments are due during the life of the loan.

    Borrowers can use the funds anyway they wish – for home repairs and improvements, medical costs, in-home care, education, and supplemental retirement income. Borrowers make no monthly payments on a reverse mortgage during its term. The loan becomes repayable when the borrower sells the home or permanently moves out. In addition, the repayment amount can't exceed the value of the home.

    Reverse mortgages are originated largely by private lenders. The most popular is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development (HUD). More than 450,000 HECMs have been made since 1989.

    NRMLA is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued evolution of reverse mortgages as an important financial option for senior homeowners while educating both its members and consumers about the varied applications of this unique loan. Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors. Details on NRMLA, reverse mortgages, and a list of reverse mortgage lenders in each state are available on NRMLA’s Web site, at http://www.reversemortgage.org.

  • HUD Calls 2008 Turning Point

    A Turning Point in the History of HUD's Home Equity Conversion Mortgage Program

  • Property Tax Deferral Programs:

    Oregon is One of only Two States that Allow Subordination of a Tax Deferral Lien - Click Here

  • When should you claim Social Security Benefits?

    Here's a surprising split answer for married couples - Click Here

Events

Return To Top