At the National Reverse Mortgage Lender’s Association annual meeting, The FHA Acting Commissioner, Carol Galante told reverse mortgage lenders that HUD plans to keep the lending limits or maximum claim amount at the current $625,500 level. This is great news for potential HECM reverse mortgage borrowers with high value homes and those who wish to purchase high value homes using a reverse mortgage.
The current lending limit was raised as part of the stimulus package in 2009 and recently extended through December 31st, 2011. We are still waiting for HUD to issue a mortgagee letter making this new extension official. I’ll keep you posted.