FHA Confirms 2012 Reverse Mortgage Limits
The Federal Housing Administration announced last week through its listserv that the current reverse mortgage loan limit of $625,500 will remain in effect for 2012 and that a mortgagee letter stating this policy is pending.
“Lenders are reminded that the maximum claim amount for HECMs is not affected by HR 2112 and the maximum claim amount for HECM remains at $625,500 as stated in Mortgagee Letters 10-40 and 11-29,” the announcement says. “This loan limit will remain the same for 2012 and will be included in the pending Mortgagee Letter.”
HR 2112 refers to the Consolidated and Further Continuing Appropriations Act 2012, which funds the U.S. Department of Housing and Urban Development for fiscal year 2012.
The National Reverse Mortgage Lenders Association will announce to the membership when the mortgagee letter is published. Also see: Reverse Mortgage HECM Limit of $625,500 Until December 31, 2011 & New Landscape for Reverse Mortgages in 2012
HUD Allocates $4 Million for Reverse Mortgage Counseling
The U.S. Department of Housing and Urban Development announced today that it is making $4 million available to counseling agencies to cover the costs of HECM counseling in fiscal year 2012.
Another $36 million is being made available for other counseling services, such as preventing foreclosures, avoiding mortgage scams, purchasing or renting a home and improving credit scores.
Grants will be awarded on a competitive basis to hundreds of HUD-approved counseling agencies and State Housing Finance Agencies across the nation.
The Consolidated and Further Continuing Appropriations Act 2012, which funds the Department for FY 2012, appropriated $45 million for counseling, so the remaining $5 million is being used for training and administrative contracts, according to HUD spokesperson Lamar Wooley.
Counseling agencies have until January 12, 2012, to submit their grant applications. To find a reverse mortgage counselor near you click here »
Congressman Frank, Ardent Supporter of Reverse Mortgages, to Retire
Congressman Barney Frank (D-MA), arguably the most knowledgeable and ardent supporter of reverse mortgages in the U.S. Congress, announced he will not seek reelection next year to a 16th term in office.
From 2007 to 2011, Frank served as chairman of the House Financial Services Committee, where he remains the ranking Democrat. Although he has been in Congress for more than 30 years, Congressman Frank is perhaps best known for shepherding through Congress a comprehensive financial services reform bill in response to the subprime mortgage crisis that bears his name and that of his Senate counterpart at the time, retired Senator Chris Dodd (D-CT).
From the standpoint of the reverse mortgage industry, we are losing an influential member of Congress who is perhaps the single most knowledgeable individual on Capitol Hill when it comes to reverse mortgage issues. Congressman Frank took the time to learn our topic (as he typically has done with most topics that have come under has jurisdiction) and has been helpful to us on many occasions over the years, both in achieving our legislative objectives and in getting other members of his committee to be supportive on matters concerning us.
Congressman Frank played an instrumental role getting higher loan limits for HECM in the 2009 economic stimulus bill, continuing the suspension of the authorization cap and supporting counseling. Also, when AARP tried to get a severe origination fee limitation enacted, Congressman Frank was instrumental in getting them to agree to a more realistic fee structure.
“We are saddened to see Congressman Frank retire from the House, but are sure he will continue to be engaged in the nation’s political discourse and look forward to hearing Barney “unleashed,” said NRMLA President & CEO Peter Bell. – Visit NRMLA at http://www.nrmlaonline.org/
“2012 Reverse Mortgage Limits” by www.allrmc.com
The experts at All Reverse Mortgage® are here to answer your questions! If you have an inquiry about reverse mortgage limits give us a call Toll Free (800) 565-1722 or request a quote by clicking here »
PS – We also welcome and respond to comments below…
By Michael G. Branson – Add me to your circles 
Tags: 2012 reverse mortgage, 2012 reverse mortgage limits, 625500
It’s arduous to find educated folks on this topic, however you sound like you know what you’re speaking about! Thanks