Mortgagee Letter


Title: HECM Mortgage Limits Effective Immediately
Source:   HUD
Date: 11/7/2008

Summary:

Mortgagee Letter 2008-35 sets the national mortgage limit at $417,000 for all HECMs insured on or after November 6, 2008.  Further, lenders must use the national mortgage limit and calculate the loan origination fee using limitations established by HERA, and new policy guidance issued by FHA, when re-calculating HECM loans that did not close prior to October 13, 2008.  The letter also notes the maximum claim amount will be the lesser of the appraised value or the national mortgage limit for a one family residence.

Effective: November 6, 2008