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New Rules Force Reverse Mortgage Borrower Age to Rise

The reverse mortgage age is on the rise thanks to new principal limit factor structure, according to new data released by Baseline Reverse. The company's data is based on 2,910 HECMs funded in January and pooled in February, according to Reverse Mortgage Daily.

"Of the 2,910 Home Equity Conversion Mortgages funded in January and pooled in February, loans originated under the 2017-era PLFs accounted for 1,345, according to the most recent data from Baseline Reverse — or about 46%, showing that major lenders are still working through the remaining 2014-PLF loans in the pipeline," according to the report.

Experts believe that the lower principal limit factors will hurt younger borrowers by making it more difficult to qualify for a HECM.

In addition, the data also showed the number of loans originated under the new rules in January came in at $211,468, down from 2014's total of $338,080 under the old rule set, according to RMD.

To learn more about the effect that the principal limit factor structure has had on the immediate reverse mortgage market, click on the image above.

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