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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... Read Full Article
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2021 brings good news for HECM borrowers wither higher value properties. HUD has announced that the new reverse mortgage loan limit for the HUD Home Equity Conversion Mortgage (HECM) will be raised from $765,600 to $822,375 effective January 1, 2021. The HUD Mortgagee Letter announcing the increase, can be found on the HUD website here: https://www.hud.gov/sites/dfiles/OCHCO/documents/2020-42hsgml.pdf This is the 5th year in a row where HUD has raised the lending limit. But more importantly than the fact that they raised the limit again the year is the amount by which... Read Full Article
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I am confused with how to pay off my parent's Reverse Mortgage. I see references to refinancing the loan, how do I do that? The home is in a Trust and was given to me; I have the Cert of Trust & Authority, etc... The mortgage company made no mention of transferring title, only asked if I intended to pay it off. So, do I pursue a traditional home mortgage and basically buy back the home? Or am I supposed to have the Title transferred and then seek a refinance?... Read Full Article
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Qualifying for a reverse mortgage today is a different process than it was in the past. As underwriting standards have tightened considerably in recent years, becoming eligible for a reverse mortgage now requires a more complex analysis of the loan applicant's financial circumstances. As a prospective borrower, it helps to know just what you are going up against during the application process, including what aspects of your financial history are most likely to impact the overall determination of whether you can be approved for a reverse mortgage. For applicants with... Read Full Article
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Reverse Mortgages allow homeowners age 62 and older to convert a portion of their home equity into tax-free loan proceeds, which can be used to meet a variety of spending needs. Unlike a forward mortgage, HECM borrowers are not required to make monthly payments toward the loan balance. Instead, the loan balance grows over time as borrowers tap into their home equity. If the borrower adheres to the loan terms, HECM borrowers do not have to repay the loan balance until they leave the home. HECMs are the most common... Read Full Article
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Update: New York Governor Vetoes Co-Op Legislation New York Governor Andrew Cuomo vetoed legislation (Senate Bill 3686-B) last week that would have permitted reverse mortgages on cooperative housing. While FHA does not permit Home Equity Conversion Mortgages on co-ops, NRMLA worked with state lawmakers and other stakeholders earlier this year to craft a bill that could have offered a way for co-op owners to use proprietary reverse mortgages for their retirement needs. In a statement announcing the veto, Governor Cuomo said, "While the goal of the legislation is... Read Full Article
