HUD announced today
as part of the Expanding American Homeownership Act of 2007 it wants enacted, that millions more seniors would be eligible for its reverse mortgage program (HECM)
, if congress increases the maximum loan amount to match FNMA/FHLMC conforming loan limits. According to HUD the volume of reverse mortgages it has funded has increased 10 fold in the past 6 years. However, eligible seniors have been limited to very modest FHA loan limits. This will help bring the product into the mainstream.
Are you guy’s active in the reverse mortgage niche? I believe there is a solid opportunity with this niche and was curious to what your opinion on the subject is.
I personally think there will be a lot more opportunity if this legislation passes, given the amount of seniors with strong equity, yet poor credit/low savings.
I have also heard few rumors about new reverse mortgage type products that will open the guidlines a bit. We will just have to wait and see.
Post a Comment