A recent Mortgagee letter from HUD announced that FHA reverse mortgages with case numbers assigned on or after October 1 must use revised “principal limit factors” to compute the proceeds that a senior borrower will be able to take from an FHA-insured reverse mortgage.

According to the Mortgage Bankers Association, that action will reduce the amount of money available to new senior borrowers by 10%.  For more information, read the letter at this link, or contact the FHA Resource Center at 800-225-5342. [Return to top]