The Experts For Reverse Mortgages in California
Reverse Mortgage News and Updates
FHA Modernization Bill
***May 2008**** FHA Modernization Update
On May 7th, Financial Services Committee Chairman Barney Frank (D-MA) plans to bring “The American Housing Rescue and Foreclosure Act” to the House floor for a vote. This is a “rollup” piece of legislation that includes a number of housing related matters, including FHA Modernization.Here is a link to the most recent press release.
You may be able to see the action live on www.cspan.org.
*** March 12, 2008****
The FHA Modernization bill is moving forward and currently being finalized. Once a bill is formally adopted by the Conference Committee, it will be sent to both chambers of Congress for approval before its sent to the President for his signature. It’s difficult to know exactly when the bill will be signed, but anticipate it will be in the next few months. We feel the changes that help people the most are the increase in the maximum claim amount limit to $417,000 nationwide and the ability to purchase homes using the HECM reverse mortgage.
On December 14, 2007, the FHA Modernization bill (S. 2338) was brought to the floor for debate and consideration by the full Senate. The bill passed by an overwhelming majority of 93 to 1.
What S. 2338 would do for the HECM program:
- Permanently eliminate the cap on the overall number of HECM loans that FHA is authorized to insure.
- Replace the county-by-county area loan limits with a single national loan limit at the conforming loan limit level, currently $417,000.
- Authorize HECMs for home purchase.
- Implement a maximum origination fee at 1.5% of maximum claim amount.
- Require the Government Accountability Office to undertake a study of the HECM program and report back to Congress
The U.S. House of Representatives passed its own version of the FHA Modernization bill this past summer. On HECM matters, the two bills are identical, but on other provisions they differ. The House and the Senate must now each appoint "conferees" who will get together to negotiate and reconcile the differences in the two versions. Once a "conference report" is issued, the compromise must be accepted by a vote in each house of Congress. This process is expected to take place in the early part of 2008.
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“Retirement is a time to allocate assets.”
Alan Greenspan
Your home is an asset that can be allocated during retirement.
The tool to 'distribute' this wealth is the reverse mortgage.
