NRMLA was successful again at having the cap on HECM lending increased. This is great news for borrowers and lenders alike. The HECM cap limit issue has been a concern for several years now, seeing as though we reach our cap several years back.
NRMLA is pleased to report that the omnibus spending bill signed by President Obama yesterday contains language that gives FHA the authority to continue insuring HECMs for the balance of the current federal fiscal year ending September 30.
By law, FHA cannot insure more than 275,000 HECMs. The cap was reached several years ago, but NRMLA has successfully lobbied Congress to suspend the cap thru various spending bills and other measures.
We expect Congress to pass new appropriations legislation later this year, so that federal agencies, like HUD, will receive new funding when the new fiscal year begins October 1-and that our cap suspension will once again be included.
Good work NRMLA! If you're a lender/broker in the reverse mortgage business and are not a member of NRMLA, you should seriously consider joining their organization. Check out their website: http://www.nrmlaonline.org/