New Limits Established For Hecm Origination Fees, Mortgage Amounts

摘要

HUD has established new limits on origination fees for FHA-insured home equity conversion mortgages (HECMs) with case numbers assigned on or after October 31. According to Mortgagee Letter 2008-34, issued on October 31, the fee limit will be the greater of $2,500 or 2 percent of the maximum claim amount (MCA) up to $200,000 and 1 percent of any portion of the MCA exceeding $200,000. The fee will be subject to an overall limit of $6,000, which will apply to loans with an MCA exceeding $400,000. The mortgagee letter implements limits on HECM origination fees established by the Housing and Economic Recovery Act of 2008 (HERA).