Congress weighs lifting limit on FHA-backed reverse mortgages

The Federal Housing Administration would be allowed to surpass a ceiling on the number of reverse mortgages it can insure under legislation passed by the House of Representatives this week.

A bill sponsored by Utah Democrat Jim Matheson, HR 391, would waive the approaching cap of 275,000 reverse annuity mortgages the FHA is currently allowed to insure.

Matheson said he plans to introduce legislation that permanently eliminates the cap, so that seniors who wish to take equity out of their homes for health care, medicine, home repairs and other needs may continue to do so. For that to happen, the Senate must pass its own version of the bill.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.