Yesterday the House of Representatives approved President Obama’s economic recovery plan with vote of 244-188. The text of the bill does include the reverse mortgage provision which was added in response to a request that came jointly from NRMLA and AARP. The provision would set the single national loan limit for HECMs at a higher level than $417,000–for the balance of 2009. See the text below.
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.
For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 171520(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).
Now the bill moves to the Senate, where debate is expected to begin as early as this week on a companion measure already taking shape.
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Absolutely outstanding suggestion.
I can’t agree more, I have never done anything like that before, what is the best approach to get in front of these people? I am in NJ and I would like to do what you suggest.
One more question, how long do you think we are looking at for this to go through?
Thanks mate for the advice.I will be following through on this.
Aloha. The 2 Hawaii senators are on board! Mahalo for all of Reverse Mortgage Daily, NRMLA and The Critic for your kokua.
what about a raise for us? don’t we deserve to make a living. The higher the limit the more we run into trust higher exsiting mortgages. More money for MIP more fees for apprasers title companies sme income for us with the $6000 cap. Spending more time with accountants, attorneys etc. realtors earning higher commisions everyone making money but us. plus rates keep changing more tripps to have redisclosures signed.
Will coop-apartments be included in obtaining a reverse morgage with this new change the President will ok?
Will it be soon?
Ms. Johnson,
On July 30, 2008, President Bush signed into law, the Housing and Economic Recovery Act of 2008 (P.L. 110-289). Section 2122(b) specifically allows FHA to insure HECMs (reverse mortgages) secured by coops. So the law you appear to be looking for has already passed. What lenders have been waiting for over the last six months is for HUD to write a Mortgagee Letter informing the lenders how to implement it.
Many of us are counting the days when we will be able to offer HECMs to seniors who own coops.
I know some people were asking for information on who to contact, I found the site below which lists state Senators with their contact info.
http://congresswhip.com/
With respect to Mr. Veale’s response to Ms. Johnson, is there any concerted effort to urge HUD to issue the requisite Mortgagee Letter informing the lenders how to implement reverse mortgages on coops?
We have been patiently waiting for the motgagee letter for the reverse mortgage for coops in Laguna Woods, CA. Do you know what is taking so long to implement it? When do you think we can get it?