FHA Modernization Bill & Reverse Mortgage Update
April 13th, 2008 | by admin Published in FHA, NRMLA, News | 3 Comments
The major news that came out of the NRMLA event in Philadelphia was regarding the FHA Modernization bill and how it would apply to reverse mortgages. Below is an overview of what Peter Bell told us:
- Agreed on a compromise that would replace the 1.5% fee cap in the pending bills with an alternative position.
- The alternative position would cap fees at 2% of the first $200,000 of maximum claim amounts plus 1% of the balance thereafter, with an overall cap of $6,000 to be adjusted occasionally for inflation.
- They also agreed to seek a national loan limit at the level that is now being proposed in the FHA mod legislation, $550,000.
NRMLA is now working together with AARP to try and get this agreement incorporated into the major housing bill that is moving through the Senate. Amendments must be filed by noon on Monday and floor action can take place as early as Tuesday. Sen. McCaskill is also considering offering an amendment of her own dealing with cross sales of reverse mortgages.
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April 16th, 2008 at 5:03 pm (#)
this is just a blog from an unnamed source. i see nothing on the nrmla web site. if this is fake and it is getting around it will be just another thing to keep the customers in the waiting mode.
May 20th, 2008 at 2:32 pm (#)
if the fha modernization bill is passed as is , how would it affect the reverse mortgage amount available.
i have a customer who really needs help , age is 62
home is in her name only . house value approx $330,000
owes $223,000 with current lender . zip is 29483.
customer is draining an annuity and will be in trouble in near future if cant make mortgage payment go away. trying to determine how short she will be if new bill passes for a reverse mortgage as she has access to some funds now.
June 18th, 2008 at 7:16 am (#)
Even if the limit was raised your borrower will still be short. I’d say closer to $44,000 short. Your issue is that the limit for your county is $254,125, so even if its raised to $417K or $550K, your client isn’t old enough to get a larger proportion of the equity. In this case they are looking for 67% when his age is currently registering closer to 54% and even with the increase, the actuarial tables won’t be changing that much.
David, the NRMLA site doesn’t publish this info on the site, its usually sent to its members or in this case spoken about directly from the NRMLA Prez himself, Peter Bell.