PJ's Reverse Mortgage Blog

"The borrower is saying, "I want a line a credit," but there were caps. There was a $200,000 cap on this [before Oct. 1], so they could get as much as $200,000 in a line of credit, taken out over a certain period of time. In some areas, you could have a house worth $800,000 and they [still] could only take out $200,000. [Since the caps were raised, lines of credit can go up to $417,000.]

The thing that I like about the FHA program is that there is counseling involved. You meet with the homeowner to make sure they understand what they are getting into, that there is no repayment of principal and interest [until] some life event occurs - you die or sell your property, or whatever that may be. So it’s an interesting tool that the market buys, and I think it’s timely. Like I said, I think the timing of it is appropriate for this next generation."

Read interview with Ginnie Mae’s new president Joseph Murin and what he says about Reverse Mortgages.

http://reversemortgagedaily.com/category/gnma/