Quantcast
Channel: Comments on: Saving the Reverse Mortgage. What If?
Viewing all articles
Browse latest Browse all 21

By: Shannon Hicks

0
0

Gary,

Excellent question. I have not been able to find hard data on the losses from traditional vs HECM FHA insured loans. That said FHA is using a projection or actuarial analysis of possible future losses. I do think the HECM program has substantial future losses. Does it seem fair when traditional FHA borrowers can get 97% LTV? Most likely not.

What really upset the assumptions the HECM model was built upon was the housing crash. Without home values plummeting we would not find ourselves here today.

It appears that HUD / FHA wants to prevent lump sums across the board. Could we see a restriction on lump sums if the adjustable Standard is kept? Perhaps.

We know the Fixed Rate Standard will be suspended but will both Standard product be taken off market? Then there’s the question will all lump sums from any product require a suitability test or criteria?


Viewing all articles
Browse latest Browse all 21

Latest Images

Trending Articles





Latest Images