Saturday, September 11, 2010

Reverse mortgage costs may lessen

The Federal Housing Administration (FHA) isn't talking publicly about it, but the agency may be getting ready to lessen the upfront costs of reverse mortgages for some borrowers. 

The agency also, however, may be reducing the amount seniors can borrow from their homes. 

In a recent conference call with the industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage (HECM=Reverse Mortgage) with almost no upfront mortgage insurance attached.

The FHA also may tinker with the traditional product in a way that increases the overall borrowing costs. 

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