The major news that came out of the NRMLA event in Philadelphia was regarding the FHA Modernization bill and how it would apply to reverse mortgages. Below is an overview of what Peter Bell told us:
- Agreed on a compromise that would replace the 1.5% fee cap in the pending bills with an alternative position.
- The alternative position would cap fees at 2% of the first $200,000 of maximum claim amounts plus 1% of the balance thereafter, with an overall cap of $6,000 to be adjusted occasionally for inflation.
- They also agreed to seek a national loan limit at the level that is now being proposed in the FHA mod legislation, $550,000.
NRMLA is now working together with AARP to try and get this agreement incorporated into the major housing bill that is moving through the Senate. Amendments must be filed by noon on Monday and floor action can take place as early as Tuesday. Sen. McCaskill is also considering offering an amendment of her own dealing with cross sales of reverse mortgages.