U.S. Department of Housing and Urban Development (HUD) announced Tuesday, August. 29, it will raise up-front fees and tighten limits for the HECM Reverse Mortgage program to avoid having to dip into the U.S. Treasury to cover troubled borrowers. These means radical changes to the HECM Reverse Mortgage program in the very short term. I do not believe the loss estimates that are being made public. This would imply that the program is being run inefficiently. Huge losses would also not be revealed overnight. There would have been indications. For this reason, I believe, given that people are living much longer than expected, that the government is getting ahead of the curve and changing the program to avoid such losses. The program’s insurance cost will be going up and the low cost option is being eliminated. In addition, the equity advance levels are going to be curtailed. This will render many currently eligible homeowner’s, with mortgages to pay off, ineligible. The deadline of October 2nd, 2017 is deceiving. Eligible homeowners must have their records in order and a case number must be ordered on or before this date. Given the required protocol for the program and the availability of HUD Counseling, this is a very short window. Please contact me directly if you even have a remote interest in the Reverse Mortgage program as now is the time to act. I can be reached directly at 703 319-2198 or george@jeffersonmortgage.com.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Located in Fairfax County - Your Reverse Mortgage Specialist in Virginia, Maryland, DC and Pennsylvania.
Questions/Comments encouraged.