In a nutshell, the Commissioner explained that from its enactment, the HECM program was intended to operate without any credit subsidy. While one might argue with OMB’s recent assessment, the fact is that OMB’s number is the “governing” number here and accordingly, there needs to be credit subsidy, or program changes, in order for the HECM program to continue operating once the new federal fiscal year begins on October 1. Since the appropriations process is unlikely to provide credit subsidy, program changes are the only viable route for keeping the program operating past September 30.

The Commissioner offered to attend a meeting, or series of meetings, with a delegation from NRMLA to discuss the future of the HECM program and reiterated that policy changes can be made as needed, so we can revisit the principal limit issue and other issues, such as re-engineering the MIP over the months ahead. However, he made clear that they needed to make the change that they are making right now and there is nothing else to be done about it.

Call 1-888-973-8377 to see if the limit change could effect how much you would receive from a Reverse Mortgage.

This entry was posted on Monday, September 28th, 2009 at 3:54 pm and is filed under Reverse Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.