Yesterday the House of Representatives approved President Obama’s economic recovery plan with vote of 244-188. The text of the bill does include the reverse mortgage provision which was added in response to a request that came jointly from NRMLA and AARP. The provision would set the single national loan limit for HECMs at a higher level than $417,000–for the balance of 2009. See the text below.
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.
For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 171520(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).
Now the bill moves to the Senate, where debate is expected to begin as early as this week on a companion measure already taking shape.