According to news reports circulated since August 27, 2010, the HECM Saver is on the way! Sources are alleging a conference call with Vicky Bott, HUD's Deputy Assistant Secretary, in which she supposedly announced plans to implement a new variant of the Home Equity Conversion Mortgage, referred to as the "HECM Saver," that will provide seniors with a reverse mortgage option that significantly lowers upfront costs by virtually eliminating the upfront Mortgage Insurance Premium that is required under the current HECM option.
Bott is also alleged to have said that there will be accompanying changes intended for the existing HECM product, now to be referred to as a "HECM Standard," and that the HECM Saver and changes to the HECM Standard are expected to be effective in early October 2010.
Apparently, this new report is said to have emanated originally from the National Reverse Mortgage Lenders Association (NRMLA), which has no such announcement on its website.
There is no direct confirmation yet from HUD regarding this new HECM Saver: no Press Release from HUD, no statement from HUD in the Federal Register, and so forth - only, as of this writing, rumors and hints.
We will monitor this matter closely and provide the actual HUD-FHA issuance, including guidelines, when and if the new HECM Saver is offered.
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