PJ's Reverse Mortgage Blog

Seniors considering a Reverse Mortgage should not wait long as the talk around Washington DC is for future changes that will cost borrowers dollars.

HUD Secretary Donovan reported today, there would be long term reforms in the reverse mortgage program down the line, but that the $250 million subsidy “is a reaction to last year’s adjustments to make sure the program does not limit its availability to seniors.”

Also the 2011 Budget requests an increase in the ongoing annual Mortgage Insurance Premium (MIP) from .5% to 1.25% and a low-to-mid single digit cut in the principal loan limit with the higher end affecting older borrowers.