Reverse Mortgage Principal Limits

[RICKY]

Well, there goes half my business. I have seen this industry change so much in the last 12 months so they can protect people form another meltdown. It really amazes me how bad the government is with noticing things. There are two reverse mortgage programs, and when the adjustable rates became higher then the fixed, and everyone started leaniing towards this, I knew it would get changed but not this fast. They must hav erealized a lot of properties would be going upside down.....


HUD Announces HECM Principal Limit Reduction

HUD has just released Mortgagee Letter 2009-34, which will reduce principal limits for all HECM loans with FHA case assignments dated October 1, 2009, or later.

While this is an unexpected change, HUD has taken this step to protect the viability of the HECM program, and ensure the continued accessibility of HECM products to qualifying seniors. It is important to note that the principal limit reduction affects all lenders and all products.

We encourage you to speak with your clients as soon as possible to discuss how this principal limit change may affect their loan terms. As a reminder, the FHA case assignment date must be made prior to October 1, 2009. Remember, an FHA case assignment cannot be made until the HUD counseling requirement has been met.

[RICKY]

Rumors starting 2010

all fha files will now need to go through an appraisal management company.

You will no longer need to have an eagle for FHA as anyone will be able to do fha loans

Banks will need a million dollar bond not a $500,000 bond. That will put a ton of mortgage banks out of busines.


This industry has now been over regulated..........

[TheHipHopBillGates]

it sucks that you'll lose business from this but I'm sure you'll find other ways to make $.

Reverse Mortgages are just a horrible fucking tool though, its just another tool to promote rampant consumerism and redistrubute wealth. It's hard to say whether or not people have the right to spend the equity they've built, but in most cases it's not $ they earned but $ that was left to them, I could image down the road the legal problems as people start fighting to have their parents power of attorney taken from them as a few here and there get ripped of by vultures.

[RICKY]

it sucks that you'll lose business from this but I'm sure you'll find other ways to make $.

Reverse Mortgages are just a horrible fucking tool though, its just another tool to promote rampant consumerism and redistrubute wealth. It's hard to say whether or not people have the right to spend the equity they've built, but in most cases it's not $ they earned but $ that was left to them, I could image down the road the legal problems as people start fighting to have their parents power of attorney taken from them as a few here and there get ripped of by vultures.

The reverse mortgage is the worse tool if people take a lump sum. They end up going upside down in 15 years. Some people have no choice bc of the way they lived their life. Tons of people rip off seniors. The wirst are usually the kids. If people choose the monthly payment they defer the least amount of interest and improve the quality of their life

[wizdom]

Rumors starting 2010

all fha files will now need to go through an appraisal management company.

You will no longer need to have an eagle for FHA as anyone will be able to do fha loans

Banks will need a million dollar bond not a $500,000 bond. That will put a ton of mortgage banks out of busines.


This industry has now been over regulated..........
come over to our team my man you will have alot of potential over here

[RICKY]

come over to our team my man you will have alot of potential over here

Thanks but if I leave, I am leaving for good.....