Washington Gets One Step Closer To Raising Reverse Mortgage Loan Limits

7/24/2008

posted by N. Sioris

Stumble It!

Late yesterday, July 23rd, The House of Representatives passed H.R. 3221: The Housing Economic Recovery Act of 2008. The vote was 272 yes to 152 no. The bill will now go back to the Senate for yet another vote. If the bill passes in the Senate, it will then go the White House for final approval.

President Bush previously threatened to veto this bill, but with urging from the Secretary of the Treasury, Henry Paulson, the president is expected to sign the bill.

The bill provides for an increase in the loan limit for FHA insured HECM reverse mortgages. It calls for a single national loan limit of $417,000. However, this limit may be increased in high cost areas to as much as $625,000.

If this bill finally passes, it will be welcome relief for many senior homeowners that need access to a larger amount of their home equity than what is allowed at the present time. Let's hope that Congress can finally get its' act together and pass this long awaited reform for higher HECM loan limits.