The Department of Housing and Urban Developement published the actuarial report for the HECM program and revealed the Federal Housing Administration’s volume predictions for the future.
According to the report, with the introduction of the HECM Saver option in FY 2011, FHA projects the number of reverse mortgages to increase by 6 percent to 85,217 in FY 2011, and continue to increase to 144,361 by FY 2016. The average Max Claim Amount per endorsement is expected to decrease in FY 2011 due to Moody’s projected house price depreciation and the expiration of the temporary FHA loan limit increase.
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