In response to the National Housing Act (HR 3221), most Reverse Mortgage lenders have announced that they will NOT allow payment of referral fees to mortgage brokers. This means that non-FHA approved brokers will no longer be able to receive the common application assistance fee, which in reality is a referral fee.
This is good news for seniors who have been marketed to by mortgage brokers who know little or nothing about reverse mortgage programs. Seniors need solid answers from experts in reverse mortgages, not “yes, we do reverse mortgages . . . I’ll get back to you”.
The good news is that this same bill will increase the FHA 203(B) (HECM reverse mortgage) lending limit. This means that senior homeowners, whose homes are currently worth more than the lending limit for their area, will likely see an increase in the amount of money available to them under the FHA HECM reverse mortgage. The new limit is expected to be $417,000 and will take effect in November of this year.
Western Pacific Home Loans- Reverse Mortgages
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