Debt Relief, Foreclosures, Timothy Kingcade Posts

Changes to Reverse Mortgage Rules for Retirees

Starting this month, some major changes are coming to the HECM reverse mortgage industry as the government aims to strengthen the long run projections of the program. The Home Equity Conversion Mortgage (HECM) is Federal Housing Administration’s (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home.

According to HUD Secretary Ben Carson, “We have a responsibility to make changes that balance our mission with our responsibility to protect taxpayers.  Furthermore, Carson noted that the changes are “needed and prudent steps to put the HECM program on a more sustainable footing so that it can remain a resource for senior borrowers.”

Here are the three major changes that have taken effect October 2017:

  1. Upfront HECM mortgage insurance premiums will be increased for certain borrowers, but lowered for others, as compared to the current system.
  2. The ongoing mortgage insurance premiums will be lowered, bringing down the total compounding rate cost for most borrowers. This could put rates more in line with the rates of traditional mortgages and the rates of home equity lines of credit.
  3. Principal limit factors will be changed, which impacts the amount of home equity that will be available for homeowners to access at various ages under the HECM program.

Click here to learn more about the specifics of each of these three major changes and how each one will affect borrowers.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at