mortgagee letter: Reverse Mortgage Changes on the Way! - 09/04/13 07:39 AM
Reverse Mortgage Changes on the Way!
The FHA has just released Mortgagee Letters 13-27 & 13-28 dealing with changes to the way Reverse Mortgages, also known as Home Equity Conversion Mortgages (HECM), will be handled in the future.
The first changes will become effective with HECM loans that have case numbers assigned beginning on September 30, 2013.  These changes will effect: Initial Disbursement Limits; Single Disbursement Lump Sum Payment Options; Initial Mortgage Insurance Premiums; Principal Limit Factors; and Initial Mortgage Insurance Premium Calculations on refinance transactions.  
Among the changes, these rules do away with the "HECM Saver" and HECM Standard".  There … (8 comments)