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
.@RedwoodCU and its staff donated a combined $5,100 toward AIDS Walk San Francisco. The CU is a longtime sponsor of the event.
3 minutes ago
See the latest from @CUNA's CompBlog on Customer Due Diligence. http://t.co/rzOzDUpNMT
13 minutes ago
New #FinCEN proposal would strengthen, clarify due diligence obligations for financial institutions. http://t.co/2yxVUXCrYA
19 minutes ago
The Hill reports House Republicans plan to delay Aug. recess to stay in D.C. until they have enough votes to pass bill on border crisis.
19 hours ago
The FHLBs of Des Moines and Seattle announce they have entered into an exclusivity arrangement regarding potential merger of the 2 entities.
20 hours ago