Yesterday, the House passed H.R. 3221: The Foreclosure Prevention Act of 2008 by a vote of 272-152. The Bill will now go back to the Senate for a vote and, assuming this passes without delay in the Senate, the Bill will then go to the White House for final approval.
The version of the bill that will be voted on by the Senate does include the reverse mortgage provisions we were all hoping for. Below is the summary of the provisions which NRMLA supplied.
- A single national loan limit of $417,000 that can increase up to as much as $625,500 in high cost areas.
- Home Purchase product authority.
- Co-op product provisions.
- Origination fees of 2% on the initial $200,000 loan amount and 1% on the balance thereafter with a cap of $6,000
- Prohibitions on requiring the purchase of annuities and other financial products.
- Restrictions around cross selling financial products.
- Requirements on counseling protocols, funding and practices that promote independence and quality in counseling.
If you want to read the full text of the bill click here.