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New York Governor Signs 2020 Reverse Mortgage Regulations

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New York Governor Signs Bill Regulations HECMs for 2020  On December 6, 2019, New York Governor Andrew Cuomo signed into law a bill, Assembly Bill 5626 (AB 5626), which, among other things, regulates reverse mortgages issued under FHA’s HECM program.  AB 5626 also appears to require lenders offering reverse mortgages in New York to obtain approval from the Superintendent of the New York Department of Financial Services (Superintendent) in order to make HECMs in New York.  The bill will take effect on March 5, 2020, and the Superintendent must... Read Full Article

What is a Reverse Mortgage? Explained in Layman’s Terms

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In 1961, banker Nelson Haynes of Deering Savings & Loan in Maine wanted to ensure that the widow of his high school football coach could remain in her lifelong house despite the loss of her husband’s income. So, Haynes wrote what is believed to be the first reverse mortgage, which lent her money against the equity of her house. The reverse mortgage has evolved heavily since its inception nearly six decades ago and evolved greatly since Congress approved it as a federally-insured product in the late 1980s.... Read Full Article

Can a reverse mortgage appraisal be used by another lender?

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Can a reverse mortgage appraisal be used by another lender? The answer to this used to be “Not only can it be used by another lender as well, but it must be used by all lenders on FHA loans until the appraisal has expired”. However, HUD has issued some strange guidance and rules in recent times in conjunction with the real estate appraisal industry. So, here is the new answer:  HUD assigns a Case Number at the lender’s request and the lender must order an appraisal... Read Full Article

2020 Reverse Mortgage Lending Limits Announced!

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In early December, the U.S. Department of Housing and Urban Development (HUD) announced that the lending limit for Home Equity Conversion Mortgages (HECMs) – the federally-backed reverse mortgage program – will be increasing for the fourth year in a row. Beginning on January 1, 2020, the lending limit for government-insured reverse mortgages will be $765,600, marking an increase of $39,075 from the lending limit HUD set for 2019. HUD announced the revised lending limit for 2020 in an officially released Mortgagee Letter (ML). The amount of... Read Full Article

Why the Lowest Reverse Mortgage Rates Offer Most Money

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If You’ve Looked at a Reverse Mortgage in the Past, You May Want to Look Again! If you have ever investigated a reverse mortgage or have thought about it, especially in the past 24 months and didn’t think the numbers worked for your needs, it may be time to check again.  The reason we say this is because one of the main factors that determines how much money you will receive in your reverse mortgage is the interest rate. Since HUD changed the Floor Rate on the program, borrowers had... Read Full Article