Although I am still terribly dissapointed with the new limit only going to $417,000 nationally, the good news is that most lenders are already allowing applications for Reverse Mortgages with the new limit, as long as the loans close after the mortgagee letter comes out and allows for it.
Hopefully, there will be enough of an outcry and political pressure to get an increase in the near future.
This increase will allow reverse refinances for now. Some have already used their dollars from their first go round. Is this a different debt/credit problem brewing?
Heath,
I don't see this as a potential problem in the future. Lenders bear some risk if values drop significantly or if rates rise more than expected. The reality is that these loans will not pay off for many years and things have a way of getting back to normal over time. Feel free to subscribe.
Michael Pinter
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