The Housing and Economic Recovery Act of 2008, Updated 10/02/08

Here's what the new law means for seniors considering a reverse mortgage:

1. A single national reverse mortgage lending limit of $417,000 has been approved by FHA on October 02, 2008.
   • Benefit: Expands the amount of equity available through an FHA insured reverse mortgage
2. Home purchase using a reverse mortgage
   • Benefit: Provides more ways to leverage a reverse mortgage, including using the proceeds from the sale of one property to downsize into another
3. Co-op provisions
   • Benefit: Allows seniors to stay in their own home and community, especially in urban areas
4. Fees capped at two percent on the initial $200,000 loan amount and one percent on the balance thereafter with a cap of $6,000
   • Benefit: Reduces total cost of a reverse mortgage
5. Prohibitions on requiring the purchase of annuities and other financial products
   • Benefit: Protects senior citizens from predatory individuals
6. Restrictions on cross-selling financial products
   • Benefit: Protects senior citizens from predatory individuals
7. Requirements on counseling protocols, funding and practices
   • Benefit: Helps seniors to become more educated and empowered borrowers

To find out how the new law affects your reverse mortgage options, call us at 1-800-466-6394 or request a call.