A 1-million dollar HECM limit?! - HECMWorld.com Skip to content

A 1-million dollar HECM limit?!


Will we see a $1 million HECM limit in 2023?

Rocket Mortgage reports their estimated 2023 baseline conforming loan limit for FHA-insured loans in 2023 will be $715,000, That’s 10% higher than $647,200 last year’s conforming loan limit which we covered here on HECMWorld.  Consequently, all HECM loans with case numbers in 2022 saw a HECM limit of $970,800. If Rocket Mortgage’s estimate is correct, then the  2023 HECM Limit, or what many in our industry refer to as the lending limit, will likely exceed one million dollars! To be honest, that’s not a huge jump from our present lending limit but notable nonetheless.

So how did we arrive at such a number or more importantly how is the HECM limit set in the first place?

Read More


Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

Leave a Comment


  1. In notifying the industry of the new limit for calendar 2021
    in Mortgagee Letter 2021-29, posted and dated 11/30/2021,, HUD explains the process differently. The amount is 150% of the Freddie Mac limit for 2021. There is no mention of FHFA..

  2. HUD officially told us in ML (Mortgagee Letter) 2021-29, dated and posted 11/30/2021, how it calculated the MCA (Maximum Claim Amount) Limit for calendar year 2022 and although similar to what was presented, it is not the same.

    In HUD ML (Mortgagee Letter) 2021-29, posted and dated 11/30/2021, HUD states that the HECM MCA Limit for 2022 was 150% of the 2022 national conforming limit for Freddie Mac of $647,200. (Note that neither the FHFA nor Fannie Mae are even mentioned.)

    There is no law requiring HUD to increase the HECM MCA Limit in the manner that it is now being done. In fact in the 2009 Obama Stimulus Act established the current method to
    raise the Freddie Mac national conforming limit, HECMs were supposedly, unintentionally omitted. Later in 2009, the omission was officially recognized and it was decided that HUD could raise the HECM MCA Limit in the manner described n HUD ML 2021-29.

    It should be pointed out that it is generally believed that the HUD Secretary could change the methodology under the general power granted to her under.the 2013 Reverse Mortgage Act. That power is restricted to changes that the Secretary believes will fiscally improve or protect the HECM program.

Add a Comment

Your email address will not be published. Required fields are marked *


Recent Stories


Subscribe to join our World

Get the latest reverse mortgage news delivered straight to your inbox.