Trump Calls for Changes to Reverse Mortgages In Oregon

Trump Calls for Changes to Reverse Mortgages In Oregon

3D House-shaped arrow bar graph go upward in living room indexing Real Estate demand and valueIn March of 2019, President Trump issued a Memorandum to reform some aspects of the governments Federal Housing programs, including the FHA insured HECM program.  One of the most drastic changes proposed is the removal of the ability to refinance a reverse mortgage. Currently, borrowers who have a reverse mortgage can refinance to access more equity if they are eligible but that might not be the case for long.  Changes are made to the HECM program often to make a stronger, safer program for the borrower. The government hopes these changes will strengthen the longevity of the program so it will be available to many more seniors for years to come. The changes that are being proposed for the HECM program are as follows:


  • Reform the loan limit structure to reflect variations in local housing markets and regional economies across the U.S. instead of the current national loan limit set to the level of high-cost markets in the forward program.
  • Set a separate capital reserve ratio and remove HECMs from the MMIF
  • Eliminate HECM-to-HECM refinances


These changes could drastically impact many Oregon seniors who may have taken out reverse mortgages in Oregon when their property values were lower or interest rates were higher. The equity in their homes may have risen drastically over the years and interest rates are very low right now. Not only that but the amount they may qualify for is partially dependent upon age so they will qualify for a higher percentage of equity as they are now older. Someone who took out a reverse mortgage in Oregon in the past should consider a refinance ASAP to boost their portfolio.


If you or your clients have a reverse mortgage in Oregon, call us today to check if a refinance may be an option before it’s too late. 503-427-1667 or click here to contact us online.


Leave a Comment

Want to keep up to date on the latest reverse mortgage news and information?
Sign up for our email newsletter here!

Follow Northwest Reverse Mortgage On Social Media



© 2019 Northwest Reverse Mortgage, LLC NMLS #1834787


Contact Us

Northwest Reverse Mortgage
10121 SE Sunnyside Rd
Ste 300
Clackamas, OR 97015

(503) 427-1667


Northwest Reverse Mortgage, LLC. NMLS 183-4787. Equal Housing Lender. Credit on approval. Terms subject to change without notice. Not a commitment to lend. Contents not provided by, or approved by FHA, HUD or any other government agency. All potential tax benefits should be verified with a professional licensed tax advisor. NMLS Consumer Access

At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; the loan balance grows over time and interest is charged on the outstanding balance; the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; interest on a reverse mortgage is not tax deductible until the borrower makes partial or full re-payment.