Maryland Reverse Mortgage Law Goes Into Effect

After being signed in to law in May, Maryland’s Reverse Mortgage Homeowners Protection Act act is scheduled to go into effect on October 1, 2010. From a practical standpoint, HB 799 requires prospective borrowers receive a reverse mortgage counseling checklist prior to counseling. The checklist includes seven points that borrowers are encouraged to discuss with […]

FHA Reform Act Provides Ability to Modify HECM Insurance Premiums

Last week the House of Representatives passed H.R. 5072, the FHA Reform Act of 2010. The bill would almost triple the cap on annual premiums that the FHA can charge borrowers for mortgage insurance, raising the cap on annual premiums to 1.50% from 0.55%. The bill also provides the US Department of Housing and Urban […]

Let the FHA Reform Act Debate Begin

A bill is making its way through Congress that will have a significant effect on the Federal Housing Administration’s mortgage insurance program and as a result, the reverse mortgage program. Sponsored by Representative Maxine Waters (D-CA), H.R. 5072, the FHA Reform Act of 2010 would give FHA the authority to increase the maximum mortgage insurance payments […]

Reverse Mortgage Legislation Update: May 13, 2010

After a short hiatus, the weekly legislative update is back. This week sees several significant developments within the reverse mortgage industry and beyond. About a month after passing H.B. 792, which would regulate reverse mortgages in Louisiana, the House of Representatives passed H.B. 1468. The bill is a revised version of H.B. 792, without 30-day […]

Legislation: Arizona Reverse Mortgage Bill Heads to Governor and More

This week has been filled with legislation, both on the federal and the state level. Two Senate Committees approved significant financial reform legislation this week, paving the way for the sweeping financial reforms long discussed to head to the Senate floor. The Restoring American Financial Stability Act (S 3127), introduced by Senate Banking Committee Chairman […]

Reverse Mortgage Legislation Update: April 19, 2010

Last week the US Department of Housing and Urban Development released data showing the number of borrowers unable to make their mortgage modification payments nearly doubled in March. In addition, several pieces of reverse mortgage legislation were discussed at the state level. Louisiana HB792, which provides for the regulation of reverse mortgages, was considered on […]

Reverse Mortgage Legislation Update: April 8, 2010

Although Congress remains in recess over their Easter break this week, that doesn’t mean it has been a dull week in the reverse mortgage world. A study by First American CoreLogic indicates that “underwater” borrowers may remain that way for longer than previously thought. While some had speculated that home values would rise in the […]

Reverse Mortgage Legislation Update: March 25, 2010

In the most important news of the week, the Health Care Reform Bill passed the House of Representatives by a 219-212 vote after weeks of intense lobbying by the Democrats. President Barack Obama signed the bill, the most significant health care legislation since the Great Depression, into law on Tuesday. On the heels of the […]

Dodd Presents Senate Version of Financial Services Bill, Lacks Reverse Amendment

After nearly three months of anticipation, Senate Banking Committee Chairman Christopher Dodd (D-CT) has finally introduced his version of the Financial Services Bill. However, the bill was introduced unilaterally, without Republican support. Dodd’s version of the bill is long—1336 pages—and both detailed and expansive. It includes the Consumer Financial Protection Agency (CFPA) located within the […]

Reverse Mortgage Legislation Update: March 11, 2010

The Senate Banking Committee announced that the new financial services bill would include a proposal for a new Office of Research and Analysis, also known as the National Institute of Finance. The goal of the agency is to provide early warnings of possible systemic collapses. To this end, the agency will give federal regulators daily […]