HUD Considers Raising Insurance Premiums on Reverse Mortgages

HUD Secretary Shaun Donovan

HUD Secretary Shaun Donovan

HUD Secretary Shaun Donovan said in a Congressional hearing on Thursday that the Government could raise insurance premiums to avoid the nearly 800 million dollar influx of taxpayer money necessary to offset all the FHA losses given the current housing market, the Wall Street Journal reported on Friday.  It would be the first time taxpayer dollars have gone into the reverse mortgage program in its 20-year history.  Donovan argued against raising the premiums, on the grounds that increased premiums or heightened restrictions could lower participation in the program.

Secretary Donovan’s fear of increasing fees and lowering participation ought to be heeded by Congress. The reverse mortgage program is a program that can help a lot of individuals remain in their home and avoid foreclosure, as we have already seen.  By adding more roadblocks, limitations, and/or costs, the government risks making the program inaccessible to the very people they wish to help the most.

 

16 Fees You May Be Charged in a Reverse Mortgage

Reverse Mortgages are sometimes stereotyped as being high in fees.  While the cost of getting a reverse mortgage is generally the same as that of getting a traditional mortgage on a new home, some of the fee names may seem unfamiliar.   For more information on fees, please see fees.  In the meantime, a laundry list of some common fee names is below:

1. Appraisal Fee

2. HECM Counseling Fee

3. FHA Reverse Mortgage Insurance

4. Loan Origination Fee

5. Title Settlement Fee

6. Title Insurance

7. Title Exam

8. Recording Fees

9. Wire Fee

10. Title Delivery

11. Flood Cert

12. Credit Report

13. Doc Prep Fee

14. Title Notary Fees

15. Flood Insurance (if you live in a flood zone)

16. Any Repair Cost