• Any FHA-approved lender may originate HECM loans.
• Lenders earn an origination fee and either earn servicing fees or sell servicing rights to other companies.
• Fannie Mae purchases HECM loans, and several companies offer loan servicing systems or services.
• Lenders are protected against loan losses that occur because the nonrecourse feature limits how much a borrower must repay.
• HECM loans may be assigned to HUD when the total loan balance equals 98% of the Maximum Claim Amount.
• HECM insurance benefits may equal up to that amount
Showing posts with label How the Lender Participates and Makes Money. Show all posts
Showing posts with label How the Lender Participates and Makes Money. Show all posts
Friday, January 18, 2008
How the Lender Participates and Makes Money
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