Is Modernization A Done Deal?

J. R. Stevens writes and says that “I have applied and have approval for an HECM, but am most anxious for Congress to raise the loan lending limits for Reverse Mortgages. A possible national limit of $417,000 would enable me to obtain more from a RM.

“Bill S2338, the FHA Modernization Act of 2007 has been sitting (in conference?) since December 2007. Does anyone know if there is any possibility of this Bill becoming law any time soon? Is Congress working on it diligently or has it been brushed aside?”

You can track this bill at Govtrack.com.

There is a great political muddle in Washington. The magic question is what next? It is not at all clear if the FHA “modernization” plan will go anywhere. It is also not clear what will.

For instance, should we have tougher rules for lenders? Should lenders have a fiduciary obligation to get the best possible loan for borrowers? Should certain forms or loans be restricted or banned? (Think of option ARMs.) Should every loan require full documentation? Should the government buy up bad loans? Is that just subprime mortgages or all toxic loans?

J.R.’s point is well-made. He could do better if the reverse mortgage limit was increased. Will it happen? As the expression, stand by….

This entry was posted on Sunday, March 23rd, 2008 at 10:34 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.