Delaware Online (08/11/08); Leondis, Alexis
The federal Housing and Economic Recovery Act of 2008 could bolster reverse mortgage originations due to an increase in the FHA loan limit to $625,500 from $362,790 and a reduction in origination fees to $6,000 from 2 percent of the home value or county FHA limit. Additionally, the bill makes it illegal for lenders to pay for housing counseling or to sell annuities and other financial products along with reverse mortgages. While more seniors will be eligible for the product, Senior Lending Network CEO David Peskin notes that it remains a high-cost product and that seniors should check out alternative sources of income first.
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