House Approves Bill to Overhaul CFPB

The House of Representatives on Thursday passed a bill essentially overhauling the power structure of the Consumer Financial Protection Bureau.  H.R. 3193, The Consumer Financial Freedom and Washington Accountability Act, sponsored by Representative Sean Duffy (R-Wisc.), passed on a bipartisan 232-182 vote. The legislation is a package of bills seeking to bring greater accountability and […]

Calif. Lawmaker Reconsiders Reverse Mortgage Protection Bill

A California lawmaker is reconsidering a consumer protection bill that would include a “suitability” checklist for reverse mortgage clients. According to the National Reverse Mortgage Lenders Association, Assemblyman Jose Medina has “expressed an interest in reviving” the bill, Assembly bill 553, that was first introduced last year. The bill was tossed out in May 2013 […]

Delayed Illinois Law Exempting Reverse Mortgages To Take Effect

Delayed legislation that has created obstacles for Illinois brokers originating certain types of reverse mortgages is set to take effect this month after being postponed for one year. Last year, Illinois Legislature delayed the exemption of reverse mortgages from its High Risk Home Loan Act of 2003 until January 10, 2014, to better align with […]

Senate Committee OKs FHA Solvency Act With Reverse Mortgage Additions

Following its passage of standalone legislation, The Reverse Mortgage Stabilization Act, which will allow the Department of Housing and Urban Development to reform the Home Equity Conversion Mortgage program, the Senate Banking Committee also passed this week the Federal Housing Administration Solvency Act of 2013.  The FHA reform bill also includes language targeting HECM change, in […]

NRMLA Urges Senate To Allow For Reverse Mortgage Change

The National Reverse Mortgage Lenders Association spoke today in support pending legislation in the Senate that would grant the Department of Housing and Urban Development the authority it needs to make swift changes to its reverse mortgage program.  Citing its responsible approach to governing the program, NRMLA applauded the Senate’s efforts toward allowing HUD to […]

FHA: No Plans to Reinstate Fixed-Rate Full Draw Reverse Mortgage

The Federal Housing Administration does not intend to reinstate the fixed rate standard reverse mortgage product it suspended earlier this year, according to one of its chief officials.  In a hearing before Senate Banking Committee members Tuesday, Carol Galante, assistant secretary for the Department of Housing and Urban Development, stated that the agency does not plan […]

NY Times: FHA Wants to Keep All Reverse Mortgage Products, Targeting Change

Changes are in store for reverse mortgages, but there are efforts under way to maintain the products that are currently available under the Federal Housing Administration’s Home Equity Conversion Mortgage program.  Citing “FHA officials who did not want to be named because they are still working with Congress on the issue,” the New York Times […]

House GOP Bill Spells Plans for Major FHA Reform, “Right-Sizing”

Legislation announced today by House Financial Services Committee Chairman Jeb Hensarling (R-TX) spells out a defined plan for reforming the Federal Housing Administration and “right-sizing” the agency which has of late dominated the U.S. housing market.  Among the plans for reform outlined in the Protecting American Taxpayers and Homeowners Act: ending the bailout of Fannie Me […]

House Spending Bill Extends Reverse Mortgage Limit Suspension

A spending bill passed this week by the House Appropriations Committee would extend a suspension on the cap placed on the number of government-insured reverse mortgages. The cap, initially set under the Home Equity Conversion Mortgage statute in 1987 at 2,500 loans, was later revised to a count of 275,000 in 2006, according to the […]

New Hampshire Bill Proves Problematic for Reverse Mortgage LO Comp

A New Hampshire bill amending loan officer compensation for reverse mortgages has garnered criticism for its vagueness.  House Bill 594 amends the state’s general consumer laws, striking out a phrase that prohibits yield spread premiums on reverse mortgage transactions.  “In a reverse mortgage transaction, any credit derived from offering an interest rate higher than the […]