The state of Texas is one step closer this week to amending its constitution to allow for the reverse mortgage for purchase loan to be made in the state.
A bill was filed this week in the state Senate by Senator John Carona to authorize the Home Equity Conversion Mortgage for Purchase product in Texas.
The state has historically been slower to adopt reverse mortgage products due to homestead laws written into the state constitution. The constitution was amended in 1999 to allow reverse mortgage lending and was also amended in 2003 and 2005.
“This is an important senior housing issue for Texas,” says Scott Norman of Sente Mortgage. “When you look at the aging demographics of our state, you quickly see how significant senior housing will become in the next two to three decades.”
Senate Joint Resolution 18 will next face legislative approval in the state senate before moving forward; a process which could take as long as 10 months before the next public vote in November.
Written by Elizabeth Ecker