The Department of Housing & Urban Development, or HUD, announced changes on August 29th that shook the industry. Lending limits are going to be tightened and premiums are going to increase. This stems to strengthen the Mutual Mortgage Insurance Fund. Some major changes are described below.
- Mortgage insurance premiums to be 2.0% on all loans
- Average amount seniors can access will decline about 6% of their home’s value
- For case numbers assigned on or after October 2nd
Many HECM professionals see these changes as a positive, as the government is continually trying to make this a sustainable product.