The Department of Housing and Urban Development this week revealed some significant changes to its Home Equity Conversion Mortgage (HECM) Program.

The HUD is implementing the following changes: adding the new HECM Saver option to the existing HECM Standard, setting new principal limit factors (PLFs) under both programs, decreasing the effective interest rate floor to 5% from 5.5%, and bringing up the annual mortgage insurance premium fee to 1.25% from 0.50%.

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