H.R. 2895 and HECM Insurance Costs
Written by admin on Thursday, September 6th, 2007 in Reverse Mortage.
One of the lesser known facts about HECM reverse mortgages is that the insurance premiums the FHA charges more than offset the costs/risk the government takes on because of HECMs. In short, the government makes money money on each HECM reverse mortgage. Here’s a pertinent quote from a recent Congressional Budget Office (CBO) analysis of H.R. 1852 (”Expanding American Homeownership Act of 2007″) a bill pending in Congress which would, among other things, help expand the HECM program: More About H.R. 2895…