House passes bill regarding reverse mortgages

The House passed a bill that will allow the Federal Housing Authority (FHA) to limit the amount of lump-sum payments that lenders are allowed to offer borrowers on their reverse mortgages. The FHA can also now require that escrow accounts be established to pay for property taxes and insurance on the mortgaged properties. Under the bill, the FHA can change the terms for new reverse mortgages in an attempt to make reverse mortgages more financially sound for the FHA to insure.

For more details read, “House votes to limit reverse mortgage initial draw.”

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