HECM volume Cap Removed

The Reverse Mortgage Advisor Volume 9.2, Summer 2006 reads "House Passes Legislation that Removes HEVM Volume Cap, Implements National Loan Limit". The the article states that the U.S. House of Representatives passed legislation, with a vote of 415-7, known as the Expanding American Homeownership Act of 2006 (H.R. 5121), which would make substantial improvements to the FHA HECM program. President Bush issued an immediate statement thanking the House and urged the Senate to pass its own version, S.3535.

This initiative, passed on July 25, would create a single national loan limit for the HECM program equal to the conforming Freddit Mac loan limit ($417,000 in 2006); establish a "home purchase" option tha would allow people to use a reverse mortgage to purchase newer housing that better suits their needs; and remove the volume cap on the numbe rof HECM loans that FHA can insure. read more...