Welcome to MBA's Reverse Mortgage Resource Center. This area has been designed to be your one location for the latest information on the growing reverse mortgage market. Check back often for updates.
"Reverse Mortgage" defined: A reverse mortgage is a loan that is available to persons 62 years and older who live in their home, and is used to release the equity in the property to the homeowner, in the form of monthly payments, a lump sum or a line of credit. Repayment is deferred until the owner dies or leaves, or the home is sold. In a reverse mortgage, the homeowner makes no payments and the debt on the property increases up to a pre-determined maximum amount.
There are currently three types of reverse mortgage products available: the Federal Housing Administration (FHA)'s Home Equity Conversion Mortgage (HECM) program, lenders' proprietary reverse loans and the Fannie Mae Home Keeper program's reverse mortgage (program ends December 31, 2008).
Reverse Mortgage Spotlight
November 12, 2009: MBA Comments on FHA Annual Independent Actuarial Study
On Thursday, November 12, the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) released the FHA's annual independent actuarial study. The review shows that FHA sustained significant losses on loans made before 2009 and projects that the capital reserve account - designed to cover losses in excess of those already projected for by the actuary - will drop below its congressionally-mandated level of two percent to .53 percent.
Click on each of the following links to find MBA's statement, a joint letter on FHA that MBA sent to Capitol Hill this morning (Senate version and House version), FHA's news release and the actuarial reports for the purchase programs and Home Equity Conversion Mortgage (HECM) program funds.
February 18, 2009: President Obama Unveils Homeowner Affordability and Stability Plan
On Wednesday, February 18, President Obama unveiled his Homeowner Affordability and Stability Plan designed to provide assistance for struggling homeowners and entice and empower servicers to help more borrowers avoid foreclosure. Click on each of the following links to find MBA’s public statement, an MBA summary of the plan and an executive summary, fact sheet and Q&A document from the White House.
February 17, 2009: President Obama Signs the Economic Stimlus Package
President Obama signed H.R. 1, the "American Recovery and Reinvestment Act of 2009" into law on February 17, 2009. The $787 billion legislation represents significant compromise on several major issues. For example, President Obama's promised middle-class tax cut has been reduced and the state fiscal stability fund, to be spent mostly on education, saw a $25 billion reduction.
On the real estate front, the bill restores 2008 government-sponsored enterprises (GSE) and Federal Housing Administration (FHA) loan limits for the 2009 calendar year and increases the Home Equity Conversion Mortgage (HECM) limit to $625,500. The bill voted on today also increased the $7,500 First Time Homebuyer Credit-enacted under the Housing and Economic Recovery Act (HERA)-to $8,000 and extends the credit to December 1, 2009, with no repayment requirement. MBA was working to increase the credit to $15,000 or ten percent of the area median house price, and to have the credit available at closing. The bill allows small businesses-enterprises with less than $15 million in annual revenues-to elect a five-year Net Operating Loss (NOL) carryback incurred for tax years ending or alternatively, beginning in 2008.
MBA Reverse Mortgage Resources
Other Reverse Mortgage Resources
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