House of Representatives votes to lift Reverse Mortgage Cap

January 17th, 2007 | by admin Published in Gov. Updates

Today the United States House of Representatives voted to waive a cap on the number of reverse mortgages that a federal housing agency may insure for older Americans. Currently the Federal Housing Administration has a ceiling on the number of reverse mortgages that it can insure at 275,000. The legislation that was voted on today will now move to the U.S. Senate, and would remove the limit and allow the federal agency to continue to underwrite reverse mortgages for more homeowners who are 62 and older. According to Rep. Jim Matheson, Democrat of Utah, who sponsored the bill, said that he and other lawmakers expect to permanently remove the cap in new legislation soon.