Still bristling from the Federal Housing Administration's decision in September to cut "principal limit factors" by roughly 10% across the board on Oct. 1, reverse mortgage lenders are now bracing for another haircut, probably around Jan. 1.

After meeting with FHA Commissioner David Stevens before the start of the Nov. 18-20 National Reverse Mortgage Lenders Association's annual conference in San Diego, the trade group's president, Peter Bell, seemed resigned to the FHA's reducing the factors in the matrix used to determine what percentage of a property's value is available to the borrower. The factors depend on the borrower's age and the loan's interest rate; for example, a 62-year-old borrower with a 5% interest rate can now borrow up to 56.2%.

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