Pending HECM Changes: The Industry Waits

ePath 100K RM leads

Proposed changes linger after Congressional hearing

As one commenter on HECMWorld put it ‘The HECM program got through the hearing all but unscathed’. Very true considering our long history of continued reductions in Principal Limit Factors and restrictions on how proceeds are distributed. That being said, we have several significant HECM changes that have yet to be finalized or announced with an implementation date which has many of our viewers asking when if these changes will be finalized, and if so when.

Of the three most notable changes, two are legislative requiring Congressional approval. The first is an unnamed pending House resolution which would eliminate the national lending limit for HECMs and instead revert back to county-by-county lending limits- or the FHA area maximum loan limit. How such a change would reduce FHA’s risk exposure from HECM loans remains to be seen. Homeowners with higher valued homes in rural counties stand to be impacted the most.

The second would be the removal of the HECM from the


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