HUD Announces Change to Reverse Mortgage Insurance Premiums and Loan Limits
On Tuesday August 29th, 2017, the Department of Housing and Urban Development announced one of the biggest changes that our reverse mortgage industry has seen. Their plans are to change the insurance premiums that are charged upfront at closing, as well as decrease the ongoing annual insurance premium from 1.25% to .5%. The upfront premium will now be 2.0% for all, whereas before it was either .5% or 2.50% depending on loan to value amounts. In addition, the biggest felt change will be the reduction of cash that people will be able to access, which is reported to be declining from an average of 64% to 58%. Note that these are just average percentages, as it does vary depending on one's age. These changes are set to take effect for all new reverse mortgage loans with case numbers obtained on or after October 2nd, 2017. Read more about this upcoming change by clicking here . Contact Rick R. Rodriguez for more information Rick R. Rodriguez Certified Reverse Mortgage