2013 HECM changes part 2

As I indicated a few weeks ago the HECM reverse mortgage is going to see some significant changes. The details of how these new rules are going to be implemented have yet to come out fully, however here are some of the highlights of what to expect.

  • Lower loan amounts based on the age/home value tables.
  • Consolidation of the HECM Standard and Saver into one new product
  • Limitations on initial disbursements in the first 12 months

This last change looks like it is going to limit borrowers in how much cash they can receive in a lump sum at the time of closing.  We can expect this rule to cause some changes in how these programs are structured and those details have not yet been rolled out.

Drop us an email with your specific questions.