White House Against VA Reverse Mortgage Product
by Peter G. Miller
June 25th, 2007
June 25th, 2007
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The good folks at Air Force Times are reporting that the White House is opposed to an expansion of the VA loan program to include reverse mortgages. (See: White House opposes VA reverse mortgages, June 23, 2007)
The proposal is contained in a bill (HR 2475) sponsored by Rep. Michael Michaud (D-ME). The proposed legislation would essentially create a VA reverse mortgage program that would compete with the existing FHA HECM reverse mortgage product.
The Air Force Times said that Keith Pedigo, the VA’s loan guaranty service director, argues that the FHA program would likely be preferred by lenders because it offers 100 percent coverage against losses while the VA program offers 25 percent coverage.
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