Reverse Mortgage Loan Limit

When the Senate passed its version of the economic stimulus bill earlier this week, people in the industry were concerned because it didn’t include a provision to raise the HECM loan limit. Yesterday, members of the U.S. House and Senate participated in a conference committee to work out the compromise for the stimulus package.

Peter Bell, President of NRMLA, sent an email to the committee and after receiving the email, they saw fit to retain the House language which adjusts the maximum claim limit for HECMs to "150% of the Freddie Mac limit," currently that would be $625,500, for the balance of this year.
Over the next few days the conference report must be accepted by votes in both the House and Senate. Then, the bill can be sent to President Obama for his signature.
There are many questions about how this will be implemented; the most asked one, of course, being, "when?" There are no answers to this yet. A lot has to be done to implement this new law. It is several hundred pages and affects every aspect of our economy, including many areas, besides HECM, that HUD will have to implement.