HECM Reverse Mortgages May Get Higher Loan Limit

7/22/2008

posted by N. Sioris

Stumble It!

The long awaited housing bill, which includes amendments to the HECM Reverse Mortgage, may finally see the light of day. The House and Senate have been debating various versions of H.R. 3221 for what seems like eons, without ever coming to an agreement and passing a revised bill.

On July 11th the Senate passed a version of H.R. 3221 and sent it over to the House of Representatives. Naturally, the House now wants to make more revisions that will include financial support and supervision for Fannie Mae and Freddie Mac. On July 23rd, the House is expected to vote once again on its' revised version of the bill. If it passes, which it is expected to, it will again go back to the Senate. If the Senate finally manages to pass the bill it will then go to the President, possibly by the end of the week. Barring a veto by the President, we may actually see the passage of H.R. 3221, by the end of July.

If the bill passes, one of the key components that will affect HECM reverse mortgages, will be an increase in the maximum loan limit. Possibly we will see a uniform national loan limit, rather than variances from county to county. This will be welcome news for reverse mortgage borrowers, especially those with high value homes.

Let's all hope that FINALLY Congress will get around to doing the People's work and pass this badly need bill with the appropriate amendments intact.