How will the new changes HUD made to the HECM program on August 29, 2017 affect borrowers?
Date Published: September 2017
With the implementation of the new policies, a borrower may pay a higher initial mortgage insurance premium, but will pay lower annual mortgage insurance premiums over the life of the loan. Additionally, borrowers may see a modest reduction in the amount of the loan proceeds available to them, but the full impact is dependent on the interest rates agreed upon by the borrower and lender. HUD reverse mortgage counselors should review the new Home Equity Conversion Mortgage (HECM) principal limit factor tables and the terms of the loan with each client to ensure they have adequate information to help them make informed decisions about the best options.