Sending a Heart Full of Thanks This Holiday Season

– ‘TIS THE SEASON – 
MERRY CHRISTMAS 

It is with a heart full of thanks that we end this fabulous year!

It means so much to me to be entrusted by you, to assist in removing financial burdens and replacing them with peace of mind.

In the spirit of the holiday season, I share below the wise words of Albert Einstein.

May they also inspire you to look out into the world and acknowledge the values that we share with one another, rather than the differences between us.

Loving our fellow man, and helping where you can, is why we are here on Earth.

Strange is our situation here upon earth. Each of us comes for a short visit, not knowing why, yet sometimes seeming to a divine purpose. 

From the standpoint of daily life, however, there is one thing we do know: That we are here for the sake of other men – above all for those upon whose smile and well-being our own happiness depends, for the countless unknown souls with whose fate we are connected by a bond of sympathy.

Many times a day, I realize how much my outer and inner life is built upon the labors of people, both living and dead, and how earnestly I must exert myself in order to give in return as much as I have received and am still receiving.” – Albert Einstein

WITH HEARTFELT GRATITUDE

May the beauty of the holidays warm your spirit, energize your soul and may the New Year be full of endless possibilities.

Warmly,
Cynthia Kee

Reverse Mortgage Lending Limit to Rise in 2020

“Every man has his secret sorrows which the world knows not; and often times we call a man cold when he is only sad.” – Henry Wadsworth Longfellow

FHA Reverse Mortgage Limit to Rise in 2020

There’s positive news for reverse mortgages as we end the year and start looking towards 2020.

The Federal Housing Administration is increasing its maximum claim amount for reverse mortgages for 2020.

According to the FHA, the HECM limit will increase in 2020 from 2019’s level of $726,525 to $765,600.

This marks the fourth straight year that the FHA has increased the HECM limit. Two years ago, the loan limit was $675,650, which means the HECM limit has increased by almost $100,000 since 2018.

The HECM limit is based on 150% of the Federal Housing Finance Agency’s conforming loan limits for Fannie Mae and Freddie Mac, which were recently raised to more than $510,000.

But unlike Fannie and Freddie’s loan limits and FHA’s forward mortgage limit, there is no geographic variation for the HECM loan limit.

The reverse mortgage limit is $765,600 for all parts of the U.S., including the high-cost areas and the special areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where forward mortgage limits far exceed the rest of the country.

The increase of nearly $40,000 over last year’s HECM limit means borrowers will soon be able to extract more equity from their homes using a government-insured reverse mortgage.

It also might mean that more people can qualify for the loan.

HECM requires borrowers to pay off an existing mortgage before obtaining the loan, so some borrowers with high mortgage balances may not have been able to secure enough proceeds to qualify.

With a higher claim amount, there may be enough money in the HECM loan to make it work.

According to the FHA, the new HECM limits are effective for case numbers assigned on or after Jan. 1, 2020, through Dec. 31, 2020.