Changes are coming to the FHA Reverse Mortgage Program

Some details are emerging on the changes that will probably happen to the FHA HECM (reverse mortgage) program.
Both the House of Representatives and the Senate have bills in front of them to cover the requested 798 million dollar subsidy that the program will require.
The House bill doesn't provide any funds to subsidize the HECM program(reverse mortgage), while the Senate bill reportedly covers only 200 million of the subsidy and requires HUD to reduce the available loans by 5% loan to value.
There are alternate suggestions by NRMLA to adjust the mortgage insurance premiums to cover the shortfall, but it remains to be seen if that will be included in the bill.
Right now, there is an effort by some in congress to kill the program or at least make it even more regulated. Some such as Sen. McCaskill, are making the outrageous claim that reverse mortgages are the next subprime. When challenged by the media for her to produce specific instances where there was abuse of the program, she could not. It will take take vigilance on the part of the industry to see that such misinformation is not allowed to go unchallenged.
In the meantime, the need for the FHA HECM is expected to grow as more baby boomers are reaching retirement and find they don't have the funds to cover their needs. By making minor adjustments, we can ensure that the program remains viable and a useful tool for our growing senior population.
Bottom line is if you are considering a Reverse Mortgage or know someone who is, they should move quickly before Congress reduces the program.
As always, I can be reached for information at 208-861-7579. To receive a quick quote on your reverse mortgage scenario, go to: http://www.fastidahohomeloans.com/forms/reverseMortgage.html