The FHA has announced new principal limit factors (PLF) for Home Equity Conversion Mortgages along with instructions to lenders to ensure that borrowers and their non-borrowing spouses understand the benefits and disadvantages of a reverse mortgage. The new PLF tables have been wholly revised and now include PLFs for use where the borrower has a non-borrowing spouse younger than age 62. In recent guidance, the FHA urged lenders to ensure that borrowers are provided with an analysis of the cost of a HECM loan and its benefits so that they can decide whether a reverse mortgage would meet their financial needs. Lenders also must advise prospective borrowers and their non-borrowing spouses to consult with a housing counselor whether PLFs below 20 percent may or may not actually improve their financial situation or meet their special needs. “Significant consideration should be given to the ...