Comments on: Reverse Mortgages Limits Raise to $625,500 http://reversemortgageloanblog.com/2009/02/19/reverse-mortgages-limits-raise-to-625500/ News and discussion about Reverse Mortgages Sat, 30 Apr 2011 21:05:04 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: James E. Veale, CPA, MBT http://reversemortgageloanblog.com/2009/02/19/reverse-mortgages-limits-raise-to-625500/comment-page-1/#comment-2807 James E. Veale, CPA, MBT Thu, 19 Feb 2009 20:26:18 +0000 http://reversemortgageloanblog.com/2009/02/19/reverse-mortgages-limits-raise-to-625500/#comment-2807 Your article is very unclear and inaccurate. First, what is “the traditional reverse mortgage program?” Since the “HUD reverse mortgage” or HECM program you refer to later, represents over 90% of all reverse mortgages, it seems it and it alone is the traditional reverse mortgage program. Your story was published today, February 19, 2009. Not only was the increase in the Lending Limit in the Joint Committee report but it was also in the final bill as passed by both chambers of Congress last Friday (2/13/2009). On Tuesday (2/17/2009) in a signing ceremony in Denver, Colorado, President Obama made it law. The limit is not at 150% of the Freddie Mac limit. In some High Cost Areas in the country, the Freddie Mac limit is already $625,500. $417,000 is the base Freddie Mac limit. Even now, there is not a single national limit. There is one lending limit everywhere except Alaska, Hawaii, Guam, and the Virgin Islands. Even though HR 1 is now law (PL 111-005), as you imply not one bank, one lender, or one financial institution can offer any HECM with a $625,500 Lending Limit until HUD implements the higher limit. However, where do you find any support for the premise that HUD will issue the Mortgagee Letter implementing the higher limits “coupled” with a new Mortgagee Letter on the HECM for Purchase program? They are not tied together at all. On February 17, 2009 (Tuesday) NRMLA sent out an advisory email, that HUD is considering at least two issues that make it unclear how long it will take HUD to issue any Mortgagee Letter on the higher lending limit. Giving those who need this increase any unwarranted expectation of early implementation or a wholly unjustified “coupled” theory is plain and simple irresponsible reporting. Your article is very unclear and inaccurate.

First, what is “the traditional reverse mortgage program?” Since the “HUD reverse mortgage” or HECM program you refer to later, represents over 90% of all reverse mortgages, it seems it and it alone is the traditional reverse mortgage program.

Your story was published today, February 19, 2009. Not only was the increase in the Lending Limit in the Joint Committee report but it was also in the final bill as passed by both chambers of Congress last Friday (2/13/2009). On Tuesday (2/17/2009) in a signing ceremony in Denver, Colorado, President Obama made it law.

The limit is not at 150% of the Freddie Mac limit. In some High Cost Areas in the country, the Freddie Mac limit is already $625,500. $417,000 is the base Freddie Mac limit.

Even now, there is not a single national limit. There is one lending limit everywhere except Alaska, Hawaii, Guam, and the Virgin Islands.

Even though HR 1 is now law (PL 111-005), as you imply not one bank, one lender, or one financial institution can offer any HECM with a $625,500 Lending Limit until HUD implements the higher limit. However, where do you find any support for the premise that HUD will issue the Mortgagee Letter implementing the higher limits “coupled” with a new Mortgagee Letter on the HECM for Purchase program? They are not tied together at all.

On February 17, 2009 (Tuesday) NRMLA sent out an advisory email, that HUD is considering at least two issues that make it unclear how long it will take HUD to issue any Mortgagee Letter on the higher lending limit.

Giving those who need this increase any unwarranted expectation of early implementation or a wholly unjustified “coupled” theory is plain and simple irresponsible reporting.

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