Reverse Mortgage Blog

Program Losses Spur Government Changes

Program Losses Spur Government Changes

September 6th, 2017 | Eligibility for Reverse Mortgage, HECM Reverse Mortgage, Seniors, Reverse Mortgage, HUD

U.S. Department of Housing and Urban Development (HUD) announced Tuesday, August. 29, it will raise up-front fees and tighten limits for the HECM Reverse Mortgage program to avoid having to dip into the U.S. Treasury to cover troubled borrowers. These means radical changes to the HECM Reverse Mortgage program in the very short term.  I do not believe the loss estimates that are being made public.  This would imply that the program is being run inefficiently.  Huge losses would also not be revealed overnight.  There would have been indications.  For this reason, I believe, given that people are living much longer than expected, that the government is getting ahead of the curve and changing the program to avoid such losses.  The program’s insurance cost will be going up and the low cost option is being eliminated.  In addition, the equity advance levels are going to be curtailed.  This will render many currently eligible homeowner’s, with mortgages to pay off, ineligible.  The deadline of October 2nd, 2017 is deceiving.  Eligible homeowners must have their records in order and a case number must be ordered on or before this date. Given the required protocol for the program and the availability of HUD Counseling, this is a very short window.  Please contact me directly if you even have a remote interest in the Reverse Mortgage program as now is the time to act.  I can be reached directly at 703 319-2198 or george@jeffersonmortgage.com.
 

 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Located in Fairfax County - Your Reverse Mortgage Specialist in Virginia, Maryland, DC and Pennsylvania.  

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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
703-319-2198
FAX: 703-773-6946
info@jeffersonmortgage.com
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland, DC & Pennsylvania. 

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Jefferson Mortgage Group LLC is licensed in Virginia, Maryland, DC & Pennslvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
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By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.