FHA to Reexamine MMI Fund Projections

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A Second Look at MMI Fund after Program Changes…

BREAKING:Read Mortgagee Letters 2013-27 & 2013-28 for complete details of changes.

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Mutual Mortgage Insurance Fund A second look at the Mutual Mortgage Insurance Fund is exactly what FHA plans do to after setting the wheels in motion for historic changes to the reverse mortgage. Yes, after committing to eliminating both the Standard and Saver product in lieu of a new one FHA wants another look. It all began in November 2012 when an Actuarial review of the MMI fund found that the reverse mortgage portion accounted for a negative 2.8 billion dollar economic value. Economic value is a better description than losses for these are projected losses based on actuarial analysis and data. In other words, with home values that fell this percent and projected loan balances and appreciation the fund would pay X dollars. Early figures showed the HECM portion of the fund accounted for 2.8 billion in projected losses of the 16 billion dollar overall future shortfall. Later that figure was revised to show projected losses from reverse mortgages totaling $5.2 billion. The dire numbers were too unsettling to ignore. So why the second look at the fund at this stage?

It’s About The Money

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Beyond Platitudes, What Retirees Really Want & Need
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Reverse Mortgage And Long Term Care

Money makes the world go around…well at least for today’s retiree according to a recent study. The National Council on Aging or NCOA’s survey “The United States of Aging” shows 53% are more concerned about outliving their money than their health. Last week we discussed the long term care crisis and the reverse mortgage’s role. Unfortunately money and a retiree’s health and long term care go hand in hand. A popular quote reads..