National Reverse Mortgage Lenders Association Co-Signs Letter Request for Loan Limit Extension
The letter, seeking a one-year extension of current FHA mortgage loan limits, was written by several trade associations and points out the ”tight underwriting already constraining mortgage availability.”
Current FHA lending limits are set to adjust back to normal on September 30 of this year after having an upward adjustment that allowed borrowers to get more money out of thier refinances, pay off higher mortgages and purchase more expensive homes. The upward adjustment has greatly benefitted all of the 11 organizationa that signed the letter as well as the stalling econimic recovery.
“While we concur with HUD that it possesses the legal authority to set loan limits for HECM after September 30, we believe extending the higher loan limits for FHA forward mortgages is critical for preserving housing values across the board,” says NRMLA President Peter Bell.
The higher lending limits are expecially crucial for reverse mortgages. Borrowers in homes valued over $417,000 have had enormous relief from the temporary increase in lending limits. These borrowers who might have a larger mortgage to pay off, could see the opportunity to get a reverse mortgage disappear completely on September 30.
Michael Manfredi is a Reverse Mortgage Specialist
Reverse Mortgage Concepts
Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556
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