A reverse mortgage bill in Texas that would extend the repayment period for HECM loans to a 15-year time frame, died in the House of Representatives this week, losing any chance of being passed this year.
Rep. Borris Miles introduced House Bill 2410 earlier this year to require that lenders offer heirs of reverse mortgage borrowers a period of at least 15 years to repay the loans. The legislation would have a major and adverse impact on the reverse mortgage market in Texas, the state’s Mortgage Bankers Association President Scott Norman told RMD in April.
While the bill was not voted on within the time allowed, and thus, will not move forward this year, according to the Texas MBA, portions of the legislation could still be added to other bills as amendments.
“Thankfully, House Bill 2410 will not pass this year,” said Norman. “I am especially grateful to MetLife, NRMLA, and Wells Fargo for their help in defeating this bill.”
Earlier this year, Texas became the state with the second-largest reverse mortgage loan volume, outpacing Florida. Norman said the bill would have ended the availability of HECMs in the state, and would have a “crushing financial effect” on the Texas reverse mortgage market.
Written by Elizabeth Ecker