What is the maximum origination fee that may be charged on an FHA Reverse Mortgage?

The loan origination fee limit is the greater of $2,500 or two percent of the maximum claim amount of the mortgage, up to a maximum claim amount (MCA) of $200,000, plus one percent of any portion of the maximum claim amount that is greater than $200,000.

Lenders may accept a lower origination fee when appropriate. The total amount of the loan origination fee may not exceed $6,000.

For more information see:
Mortgagee Letter 2008-34 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Federal Register 24 CFR Parts 30 and 206.31 at:  https://www.govinfo.gov/content/pkg/FR-2017-01-19/pdf/2017-01044.pdf 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01006