Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FHA designing new reverse mortgage option
WASHINGTON (8/31/10)--The Federal Housing Administration (FHA) held a telephone briefing recently to inform the housing industry that it is looking at options to provide a lower-priced home equity conversion mortgage(HECM) option. An FHA spokesman told News Now that there has been no formal agency announcement because FHA is still working out details. But he confirmed it is FHA’s intention to “make the product more attractive while limiting FHA’s exposure to risk.” As reported by a number of news outlets, FHA is designing a reverse mortgage product it will call HECM Saver. It is also considering changes to its original HECM program. The HECM Saver is targeted to senior citizens who want to tap the equity in their homes to help cover medical costs, or even daily living expenses, according to an Aug. 30 article in American Banker. For a reduced up-front premium, a borrower would take 10% to 18% less in available funds than the standard home equity conversion mortgage provides.


RSS print
News Now LiveWire
Goodwill Industries latest to report data security breach http://t.co/gIaXNsT4Bk
14 hours ago
CUNA economist Schenk discusses regulators' focus on interest-rate risk. See CU Magazine: http://t.co/tW1p9rTSSv
16 hours ago
Fed issues annual report on general-use prepaid cards in gov't-administered payment programs. http://t.co/3zPhejSPZt
16 hours ago
Children in foster care face higher risk of identity theft via @NBCNews http://t.co/Dif0hCfBdA
16 hours ago
.@Cornerstone_CUL's leadership conference includes food drive for San Antonio food bank http://t.co/h2O8O4TxuD
17 hours ago