HUD Scores Big With HECM Program

by Peter G. Miller
March 19th, 2008

While the financial world looks more-shaky than anyone would prefer, HUD says the HECM program continues to boom.

For the last half of February, the 16th through the 29th, HUD says it insured 5,703 reverse mortgages. This is a very good number in general and an especially good number considering that the month was short a day or two.

HUD estimates that it may do 130,000 HECMs this year, a record if the prediction holds. Actually, the run-rate for the last half of February is above the projection.

We don’t know all the reasons for the growth of HUD-backed reverse mortgages but some reasons seem to stick out.

First, the program is better known than in the past.

Second, in a period of difficult economics, the FHA reverse mortgage program stands out as one of the better and saner mortgage options for those who qualify.

If the mortgage marketplace in general continues to erode you can bet that reverse mortgage volume will grow even more. The HECM is an asset-based loan at a time when an increasing number of people face declining incomes and weakened credit scores.

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2 Responses to “HUD Scores Big With HECM Program”

  1. J. R. STEVENS Says:

    I have applied and have approval for an HECM, but am most anxious for Congress to raise the loan lending limits for Reverse Mortgages. A possible national limit of $417,000 would enable me to obtain more from a RM.
    Bill S2338, FHA Modernization Act of 2007 has been sitting (in conference?) since December 2007.
    Does anyone know if there is any possibility of this Bill becoming law any time soon? Is Congress working on it diligently or has it been brushed aside?
    ANY info most welcome!

  2. Is Modernization A Done Deal? | Reverse Mortgage Guide Says:

    [...] J. R. Stevens writes and says that “I have applied and have approval for an HECM, but am most anxious for Congress to raise the loan lending limits for Reverse Mortgages. A possible national limit of $417,000 would enable me to obtain more from a RM. [...]