nrmla: HECM Cap Extended in Omnibus Spending Bill
- 03/12/09 04:31 AM
NRMLA was successful again at having the cap on HECM lending increased. This is great news for borrowers and lenders alike. The HECM cap limit issue has been a concern for several years now, seeing as though we reach our cap several years back. NRMLA is pleased to report that the omnibus spending bill signed by President Obama yesterday contains language that gives FHA the authority to continue insuring HECMs for the balance of the current federal fiscal year ending September 30. By law, FHA cannot insure more than 275,000 HECMs. The cap was reached several years ago, but NRMLA has successfully … (0 comments)
nrmla: New $625,500 HECM Loan Limit
- 02/18/09 03:30 AM
The economic stimulus bill signed into law by President Obama yesterday (2/17/09) raises the single national loan limit for HECMs (Home Equity Conversion Mortgage) to 150% of the Freddie Mac loan limit. Currently, that would create a HECM limit of $625,500. The higher limit is only applicable for loans made during the balance of 2009. This will not take effect until HUD issues a Mortgagee Letter. The timing is still unknown as to when the Mortgagee Letter will be released. What does this mean to borrowers? For senior homeowners will higher value homes this will have a huge impact. Since the … (0 comments)
NRMLA was successful again at having the cap on HECM lending increased. This is great news for borrowers and lenders alike. The HECM cap limit issue has been a concern for several years now, seeing as though we reach our cap several years back.
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