Senate Spending Bill Extends Higher Reverse Mortgage Limits

The Senate looks like it’s ready to pass a Continuing Resolution on Wednesday, which is needed in order to avoid a government shutdown before the new fiscal year begins Oct. 1st.

The bill would also extend the $625,500 loan limit for reverse mortgages insured by the Federal Housing Administration according to a draft summary released on Tuesday.  Additionally, current loan limits for FHA, Fannie Mae, and Freddie Mac would be extended through FY 2011.

“We are glad to see that common sense has prevailed and that Senate appropriators have responded to our appeals to retain the current loan limits,” said Peter Bell, President of the National Reverse Mortgage Lenders Association in an email to RMD. “This provision still has a few more hurdles before the continuing resolution becomes law, so we’re not entirely home free on this yet.”

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The House would still have to pass an identical version of the Senate bill before President Barack Obama could sign it into law.

The continuing resolution, which will fund most existing programs at current spending levels through Dec. 3, reduces overall funding by $9 billion.

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  • Admin,
    Does this CR carry the lending limit through 9/30/2011 or 12/31/2011? Both the House passed bill and the Senate proposed bill carried it through 9/30/2011 as you correctly stated in an article dated September 27, 2010 related to the same subject and the MBA: “Both the House of Representatives and the Senate Appropriations Committee have approved bills that extend the higher conforming loan limits through September 30, 2011.”
    BUT then you went on to say: “However, an extension to the end of 2011 is important in order to synchronize with the statutory requirement that loan limits be set on an annual basis.” Can you point out where this is required?
    It seems the provision is next to worthless if the bill does not get the dates right.

    Thanks.

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