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What is Fannie Maes role in the Reverse Mortgage program?

April 26, 2017Fannie Mae program reverse mortgage

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What is Fannie Maes role in the Reverse Mortgage program?

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A. Fannie Mae has agreed to purchase two types of adjustable-rate HECM loans from the lenders who originated them. One adjustable-rate mortgage (ARM) plan features annual interest rate adjustments with a 2% cap on the amount that the interest may change at each adjustment and a 5% cap on increases or decreases over the life of the loan. The other ARM plan features monthly interest rate changes and limits interest rate increase to a 10% over the life of the loan.