| Description: | In 2000, HUD completed an evaluation of the HECM Program entitled, “No Place Like Home: A Report to Congress on FHA’s Home Equity Conversion Mortgage Program,” hereafter known as the 2000 HECM Report. This report updates the actuarial analysis presented in the 2000 HECM Report and examines the potential impact of three legislated changes to FHA’s Home Equity Conversion Mortgage Program:
* Replace local loan limits with a single, national loan limit,
* Reduce the premium for refinancing, and
* Waive the upfront premium for HECMs used exclusively for the payment of long-term care insurance policies.
The first two changes are analyzed using a simulation model whereas the third change is analyzed by considering the intersection of HECM borrowers and Long-Term Care insurance participants. |
