BREAKING: New PLFs Released - Skip to content

BREAKING: New PLFs Released


More money for older HECM borrowers, substantially less when younger non-borrowing spouse present

Today HUD released new PLFs (Principal Limit Factors) which now include a table for younger co-borrowers.  Jerry Wagner, the President & owner of IBIS Software which provides  origination software and information for both HUD and HECM Lenders released a very helpful comparison chart (see downloads below) which helps identify the impact of the new lending ratios.

Here is a summary of the changes:

  • HUD made the changes via Mortgagee Letter 2014-12
  • Younger primary borrowers will see a modest increase in their PLFs until the Expected Rate reaches 5.37% and higher (see inset below).
  • Older borrower will see a substantial increase in proceeds until the Expected Rate nears 7% and higher
  • The new Principal Limit Factors go into effect for FHA case numbers assigned on or after August 4th, 2014
  • Borrowers who have not closed their loans and have FHA case numbers prior to August 4th may opt to use the new PLFs (see ML 2014-14 for requirements)
  • The table for younger non-borrowing spouses (18-61 years old) only applies if at least one borrower meets the minimum HECM age requirement of 62. Proceeds will be based on the age of the youngest spouse.


NEW 2014 PLF Table     PLF Change Analysis (IBIS Software)   Mortgagee Letter 2014-14

NEW PLF Analysis
NEW PLF Analysis













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