Reverse Mortgage Legislation Update – January 14, 2010

The Senate equivalent of the Financial Services Bill is expected to hit the floor this month. It is unclear whether the reverse mortgage amendment passed in the House will be in the Senate’s version of the bill.

House Majority Leader Steny Hoyer (D – MD) released a press release on Tuesday citing the 44% rise in existing home sales and 15% drop in housing inventory as one of the top 5 economic developments of 2009.

Democratic Senator and Senate Banking Committee Chair Chris Dodd (D-CT) is stepping down heading into what would have been a contentious re-election battle this fall. With the Financial Services Bill heading into the Senate this month, speculation remains as to how the decision will affect Dodd’s handling of the bill. However, many believe his decision not to seek reelection will help the bill pass.

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A number of regulations went into effect at the beginning of the year. These include:

  • The California Elder Protection Act of 2009
  • SAFE Act
  • Mortgagee Letter 2009-28, covering new appraisal guidelines for lenders

In addition, changes to RESPA also went into effect on January 1, 2010, including the new GFEs and HUD-1s.

While HUD urged law enforcement to be lenient enforcing RESPA for the first four months, the FDIC has not issued such guidance.

Write to Reva Minkoff

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