Credit unions that issue reverse mortgages in the Home EquityConversion Mortgage program should find a more stable market thisfall after the Department of Housing and Urban Development left thelimit for the maximum mortgage amount in place at $625,500 in allareas of the U.S.
|The amount had been expected to drop in certain higher-costareas of the country as of Oct. 1. The Federal HousingAdministration, which HUD oversees, had already announced thatlimit for the size of forward mortgages eligible for FHA insurancewould drop on Oct. 1, effectively limiting them in more-expensivemarkets.
|The loan limit for the HECM program was raised from $417,000 to$625,500 in February 2009 and was extended last year. It had been scheduledto drop again on Oct. 1.
|Reverse mortgage providers in higher-cost parts of the countryhad warned that dropping the limits on amounts eligible forreverse mortgages would have a severely negative impact ontheir business.
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