It appears the Standard HECM Reverse Mortgage will be eliminated on October 1st. The full details are still being worked out by HUD but we understand they are planning to create a new reverse mortgage loan program and discontinuing the two programs, the Standard and Saver options. There will be new principal limit factors that range somewhere between the current programs. Stay tuned to find out where these new PL factors will fall.
There has been plans to establish a financial assessment and a set aside for property tax and insurance payments but those changes may come a few months after the new program is implemented.
The mortgage insurance premiums on the new product will vary depending on the amount drawn upfront by the borrower and whether that amount exceeds a 60% threshold or not. And only borrowers with recorded liens or obligations that must be paid will be able to exceed that threshold.
We expect to hear from HUD for exact details very soon.
But if you or someone you know needs to get the maximum available on the reverse mortgage, it's important to schedule reverse mortgage counseling right away and get an application in soon after counseling is completed.
For a completed counseling list and counseling packet, please send me an email: firstname.lastname@example.org or call: 800-684-9438