Update – NMRLA and New Lending Limits

RMinfo.com: We heard great things from your recent industry convention, the National Reverse Mortgage Lending Association (NRMLA).  Jim, please give us an update.

Jim: Over time we have learned that there are those in this industry who only cover the advantages and avoid many of the things that concern borrowers the most.  We spent a great deal of time covering those concerns.

We believe the more borrowers find out about their lender and originator (also called loan officers, specialists, consultants, etc.), the better.  Borrowers should only deal with those who they can trust.

Too many times originators avoid the topic of repayment as if nothing will be required to be repaid.  Another issue is the sales technique of trying to downplay the upfront costs of this loan.  In part that is true because few of these costs must be paid for by the borrower before the loan becomes due and payable generally several, if not, many years into the future.

RMinfo.com: What happened to the bill on the new lending limit?

Jim: President Obama signed H.R. 2996 into law and HUD issued Mortgage Letter 2009-50 implementing it.  We will be able to use the $625,500 lending limit in our computations through December 31, 2010.

James E. Veale is a nationally recognized authority on the subject of reverse mortgages. As part of his commitment to seniors and the reverse mortgage industry, Jim became a member of the Congressional Relations Committee and Professional Designation Task Force of the National Reverse Mortgage Lenders Association (NRMLA) whose lenders handle over 97% of all reverse mortgage transactions done in the United States. Jim is a California CPA with a master’s degree in business taxation from the University of Southern California.