Tuesday, July 17, 2007

The Reverse Mortgage Boom

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.

3 comments:

mike said...

Paul,
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.

Paul said...

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.

Anonymous said...

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.