Senate Appropriators Include HECM Subsidy in HUD Budget
July 26th, 2010 | by admin Published in FHA, Legislation, NRMLA, News, Reverse Mortgage | 6 Comments
The Senate Appropriations Committee included $150 million for the Federal Housing Administration’s reverse mortgage program in the US Department of Housing and Urban Development’s FY 2011 budget, matching the amount provided by the House.
Next the bills head to the full House and Senate for vote. If each passes, House and Senate appropriation conferees will have to reconcile their respective spending bills before each chamber votes again on a final version according to the National Reverse Mortgage Lenders Association. Both houses are tentatively scheduled to be on vacation from early in of August through September 14.
If Congress fails to reconcile the bills before the new federal fiscal year begins, lawmakers will need to pass a continuing resolution that keeps government agencies funded. “NRMLA continues to work closely with lawmakers to urge that the credit subsidy be kept in the final HUD budget,” said the association in an alert to members.
The appropriation is less than the $250 million the Obama Administration requested in its FY 2011 budget to help offset projected losses for the HECM program, but appropriators feel the $150 million is sufficient to cover expected volume. Without the subsidy, Commissioner David Stevens said during testimony earlier this year that FHA will be forced to reduce the amount of money available to seniors through the program by 21%.
Jeff Lewis, Chairman of Generation Mortgage and the leader behind the Coalition for Independent Seniors said getting the appropriation in the House and Senate is great news. ”It’s an indication that we have growing support and awareness, but we have to continue our efforts to educate and bring the policy makers into the fold,” he said.
- Related Posts
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- Senate and House Appropriation Bills Have Different Reverse Mortgage Solutions
- If Reverse Mortgage Industry Grows, Could Exceed Appropriation
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July 26th, 2010 at 1:06 pm (#)
This is a great start. The problem boils down to whether or not a Democratic Congress has the nerve to send any spending bills to the President before off year elections other those considered essential, criticial and crucial. We get the appropriation through Continuing Resolutions but who knows.
I disagree with Jeff. It is highly unlikely that the Principal Limit Factors will drop 23% (a total decrease of 31% from where they were on 9/30/2009, i.e., 90% X 77% = ~69%) from where we are now if we don't get the appropriations. Why it would fall that low is if we do not get both the appropriations and the request for the right to increase ongoing MIP to 1.25%. It is the combination that the FHA Commissioner was addressing, not just the appropriation.
July 26th, 2010 at 2:42 pm (#)
FYI… Jeff didn't say the PLFs would drop, Commissioner Stevens did.
July 26th, 2010 at 6:39 pm (#)
Admin,
Oops — my error. My apologizies to Jeff. Thank you for pointing out my error.
July 28th, 2010 at 1:40 pm (#)
I am not sure about all of this all I know is I don`t want to leave my home my husband too. We have worked to long and to hard to lose our home because we can`t afford it when my husband retires. I will support anything that can hep us do that
July 28th, 2010 at 9:13 pm (#)
Reverse mortgage is a very good idea for all of us 62 years and older, but the thing is that even though we won't have to pay a monthly mortgage, if you are on a fixed income, the property taxes and homeowners insurance are so high, that if you don't pay it because your fixed income doesn't allow you to spend that much money, then you loose your house anyway. I live in South Florida, and the property taxes and insurace down here are getting higher and higher, very difficult to afford!!!
July 29th, 2010 at 4:13 am (#)
Reverse mortgage is a very good idea for all of us 62 years and older, but the thing is that even though we won’t have to pay a monthly mortgage, if you are on a fixed income, the property taxes and homeowners insurance are so high, that if you don’t pay it because your fixed income doesn’t allow you to spend that much money, then you loose your house anyway. I live in South Florida, and the property taxes and insurace down here are getting higher and higher, very difficult to afford!!!