The legislation eliminates the cap on the number of reverse mortgages that can be insured by the Department of Housing and Urban Development.
December 21, 2005 (Press Release) --
Lakewood, Colo.– 1st Reverse Mortgage USA®, a division of Mountain Pacific Mortgage, a Colorado based full service mortgage banker specializing in net branching, commercial loans and reverse mortgages today noted that last week the U.S. House of Representatives approved a bill that would remove the existing limit on how many reverse mortgages the Federal Housing Administration may insure.
The legislation eliminates the cap on the number of reverse mortgages that can be insured by the Department of Housing and Urban Development.
H.R. 2892, the Reverse Mortgages to Help America’s Seniors Act, applies to loans issued under the Home Equity Conversion Mortgage program of the Department of Housing and Urban Development.
A Senate version of the bill introduced by Senator Rick Santorum (R-PA) is pending approval. Both bills enjoy bi-partisan support in Congress and are endorsed by consumer groups, such as AARP.
“Passage by the U.S. Senate is critical for America’s seniors. Reverse mortgages enable seniors to convert part of their home equity into income, without having to sell their homes. Seniors’ ability to increase their monthly incomes to pay for home repair, rising property taxes, and the increasing cost of health care is providing incredible peace of mind for seniors”, and we can take great comfort in knowing that the availability of this program is not in jeopardy said Barry Scoles, division manager of 1st Reverse Mortgage USA®.
The Home Equity Conversion Mortgage (HECM), an FHA insured reverse mortgage program that started in 1989 has a limit of 250,000 reverse mortgages. HECM loans are the most popular reverse-mortgage product. In April 2005, concerns of a possible suspension of the program arose when the cap was almost reached. The 2005 Emergency Supplemental Appropriations bill raised the cap from 150,000 to 250,000.
A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their homes, without having to sell the home, give up title, or take on new monthly mortgage payments. Loan proceeds can be used for any purpose, and taken out as a lump sum, fixed monthly payments, line of credit, or a combination.
The loan amount depends on the borrower’s age, current interest rates, and the value and location of the home. A reverse mortgage does not have to be repaid until the borrower moves out of the home permanently, and the repayment amount cannot exceed the value of the home. A senior’s home does not have to be owned free and clear to qualify for a reverse mortgage. Reverse mortgages are often used to retire existing debt on a home.
The legislation eliminates the cap on the number of reverse mortgages that can be insured by the Department of Housing and Urban Development.
H.R. 2892, the Reverse Mortgages to Help America’s Seniors Act, applies to loans issued under the Home Equity Conversion Mortgage program of the Department of Housing and Urban Development.
A Senate version of the bill introduced by Senator Rick Santorum (R-PA) is pending approval. Both bills enjoy bi-partisan support in Congress and are endorsed by consumer groups, such as AARP.
“Passage by the U.S. Senate is critical for America’s seniors. Reverse mortgages enable seniors to convert part of their home equity into income, without having to sell their homes. Seniors’ ability to increase their monthly incomes to pay for home repair, rising property taxes, and the increasing cost of health care is providing incredible peace of mind for seniors”, and we can take great comfort in knowing that the availability of this program is not in jeopardy said Barry Scoles, division manager of 1st Reverse Mortgage USA®.
The Home Equity Conversion Mortgage (HECM), an FHA insured reverse mortgage program that started in 1989 has a limit of 250,000 reverse mortgages. HECM loans are the most popular reverse-mortgage product. In April 2005, concerns of a possible suspension of the program arose when the cap was almost reached. The 2005 Emergency Supplemental Appropriations bill raised the cap from 150,000 to 250,000.
A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their homes, without having to sell the home, give up title, or take on new monthly mortgage payments. Loan proceeds can be used for any purpose, and taken out as a lump sum, fixed monthly payments, line of credit, or a combination.
The loan amount depends on the borrower’s age, current interest rates, and the value and location of the home. A reverse mortgage does not have to be repaid until the borrower moves out of the home permanently, and the repayment amount cannot exceed the value of the home. A senior’s home does not have to be owned free and clear to qualify for a reverse mortgage. Reverse mortgages are often used to retire existing debt on a home.
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