Page 611
b. Maximum Claim Amount (04/29/2024)
i. Definition
The Maximum Claim Amount (MCA) is the lesser of the:
• appraised value as determined by the Collateral Risk Assessment;
• national mortgage limit; or
• sales contract price (applicable only to HECM for Purchase).
Page 612
II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
3. Allowable Mortgage Parameters
ii. Standard
The Mortgagee must determine the MCA at origination. When the collateral risk assessment determines that a second appraisal is required, the Mortgagee must use the lower of the two appraised values. The IMIP must not be taken into account in the calculation of the MCA. Closing costs must not be taken into account in determining appraised value.