I just faxed the following letter to Diane Feinstein and Barbara Boxer (California State Senators), concerning a senate bill being debated today:

"Tens of thousands of senior homeowners in California need the FHA-insured HECMs to help them maintain their ability to continue living independently in their own homes. But the FHA loan limits have been far too low for too long and are thus incapable of helping thousands of seniors who live in high-cost areas of the state.

Due to the housing market in California, and lack of jumbo reverse mortgage lenders (Bank of America and Indy Mac Bank have recently suspended their programs), seniors have more debt than the amount they can borrow from a HECM based on today's lower loan limits, so an increase is necessary.

As a reverse mortgage loan officer, I personally know 4 different households who will face foreclosure if the FHA HECM limit is only increased to the proposed $417,000.

The HECM program should be amended to allow senior homeowners to obtain HECMs based upon the same higher loan limit that would be allowed for other FHA loans under the pending legislation.

Please call Sen. Richard Shelby from Alabama, as well as Sen. Chris Dodd, the Democratic chairman of the committee, and tell them we must see a $625,500 maximum loan limit for HECM included in the bill that is brought to the floor."