Fannie Mae has increased its required yield on Federal Housing Administration (FHA)reverse mortgages, which will have the net effect of increasing the interest rate on those loans by 50 to 75 basis points, according to lenders.

National Reverse Mortgage Lenders Association president Peter Bell said Fannie Mae's action was unexpected.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.