Today Fannie Mae announced that they would be discontinuing their Home Keeper reverse mortgage product. With the Housing and Economic Recovery Act of 2008 being signed into law, there is no real need for the product. Below is a copy of the announcement from FNMA.
As you are aware, Congress passed, and the President signed into law, the Housing and Economic Recovery Act of 2008 (HERA). Among many other things, HERA increased the loan limits for the FHA Home Equity Conversion Mortgage (HECM) product and authorized HECMs for home purchase.
While Fannie Mae is proud that the Home Keeper mortgage has served a vital role in the development of the reverse mortgage market for a dozen years, we no longer see a significant role for the Home Keeper mortgage in light of the HECM program expansion. Consequently, effective December 31, 2008, Fannie Mae will no longer purchase Home Keeper mortgages. Lenders should manage their delivery pipelines so that there are no unfulfilled commitments as of this effective date.
Moreover, Fannie Mae requests that lenders and other industry participants discontinue use of the Home Keeper trademark, product materials, and other communications related to the Home Keeper product, including but not limited to Fannie Mae’s proprietary loan documents, calculations, lender guides, consumer materials, and any other intellectual property rights belonging to Fannie Mae.
We look forward to working with the Department of Housing and Urban Development and our lender partners to provide continued support of the HECM program.
This Reverse Mortgage Lender Letter modifies the Fannie Mae Reverse Mortgage Selling and Servicing Guide. For questions about this policy, reverse mortgage lenders should contact their Fannie Mae Account Team.