Bill Could Lift Reverse Mortgage Volume Cap
The U.S. House of Representatives is considering a bill, H.R. 2892, that could eliminate volume caps on reverse mortgages insured by the Federal Housing Administration.[@@]
In federal fiscal year 2005, Congress increased the number of FHA-insured reverse mortgage loans that lenders could issue to 200,000, from 150,000.
Rep. Michael Fitzpatrick, R-Pa., the lead sponsor of H.R. 2892, says his bill will ensure the viability of the reverse mortgage program by completely eliminating the volume cap.
Reverse mortgage loans, available to Americans age 62 and older since 1989, let homeowners convert home equity into tax-free income without selling their homes, giving up their titles or taking on responsibility for new mortgage payments.