Florida Congresswoman Ileana Ros-Lehtinen (R-FL) stated her support for reverse mortgage reforms following the passage of the Reverse Mortgage Stabilization Act, approved by the House of Representatives last week.
The bill allows the Department of Housing and Urban Development to make program changes via mortgagee letter including caps to upfront draws and mandatory escrows in an effort to protect borrowers and the Federal Housing Administration’s Mutual Mortgage Insurance Fund.
The House passed the bill last week by unanimous consent after receiving bipartisan support and sponsorship by Reps. Michael Fitzpatrick (R-PA) and Denny Heck (D-WA). A companion bill has been introduced in the Senate by Senator Robert Menendez (D-NJ).
“I am pleased that the House approved this bill with strong support from both parties and the Administration,” Rep. Ros-Lehtinen said in a statement. “These reforms will ensure that the Reverse Mortgage program will continue to help seniors benefit from their home ownership.”
The next step toward the bill becoming law will be for the Senate to pass a bill with the same, or similar language.
Written by Elizabeth Ecker