Fannie Mae Switches to Live Pricing on Reverse Mortgages
Monday, 08 June 2009 14:36
Earlier this month, the Federal National Mortgage Association (also known as Fannie Mae or FNMA) switched to "live pricing" on their reverse mortgage business. In a live pricing arrangement, the interest rates and allowable lender profit margins that are offered are updated daily instead of on a weekly basis.
Since Fannie Mae has been acting as the sole buyer of reverse mortgages over the last year, this change essentially catches the reverse mortgage market up to the traditional or "forward" mortgage market, which has used live pricing for years. The effect on seniors has yet to be determined, with the possibility of higher costs and more questionable sales practices being feared.
For more information on reverse mortgages, check out the following articles:
Senior Lending Network To Offer Reverse Mortgages Through Busey Bank
Monday, 08 June 2009 14:35
Under the Senior Lending Network's new Direct Bank program, customers of Illinois-based Busey Bank will now have access to reverse mortgages.
The 40+ branch Busey Bank is the first local bank to join the Senior Lending Direct Bank program. The Direct Bank program provides lending and back-office services to banks wishing to offer reverse lending to their customers, but lack the capacity and infrastructure.
For more information on reverse mortgages and the FHA Home Equity Conversion Mortgage (HECM) program, check out the following articles:
FHA Reverse Mortgage (HECM) Volume Up 859.2% in Just Seven Years
Monday, 08 June 2009 14:34
In its fiscal year-end Annual Management Report , the Federal Housing Association confirmed that the popularity of reverse mortgages continues to grow. In fact, its HECM reverse mortgage program grew from 107,103 new mortgages endorsed in 2007, to 111,661 in 2008.
While many expect that the overall mortgage market will continue to struggle, it would not be surprising to see continued strength in the reverse mortgage market in 2009, especially considering the increase in the maximum loan amount to $625,500 . This higher reverse mortgage limit may very well attract owners of higher value homes who previously could not fully participate in the FHA reverse mortgage program.
For more information on reverse mortgages and the FHA Home Equity Conversion Mortgage (HECM) program, check out the following articles:
FCA Reverse Mortgage Limit Raised to $625,500 for 2009
Monday, 08 June 2009 14:33
If you've been considering a reverse mortgage, 2009 may be the year to act. Under the American Recovery and Reinvestment Act signed into law by President Obama, the limit for the FHA's most popular reverse mortgage program has been raised to $625,500. The previous limit on the FHA's HECM mortgage program was $417,000.
There's a catch though... the increased limit is currently only approved through December 31, 2009. That means that without government intervention, this higher loan limit will expire at the end of the year and revert to the lower 2008 FHA HECM limit.
For more information on reverse mortgages and the FHA Home Equity Conversion Mortgage (HECM) program, check out the following articles:
