NRMLA Washington Update

NRMLA continues to be engaged with the Department of Housing and Urban Development and industry stakeholders in the interpretation and implementation of H.R. 3221 Housing and Economic recover Act (HERA).

Since returning from Spring recess, Congress has become preoccupied with passing foreclosure prevention legislation to deal with falling home values and the credit crisis.

NRMLA has learned that lawmakers have negotiated a final version of the FHA Modernization bill (HR 1852, S 2388) that retains many important reverse mortgage reforms.

NRMLA remains optimistic that Congress will convene a “conference” committee in the near future (possibly next month) to reconcile the FHA Modernization bills approved by the House of Representatives (H.R. 1852) and Senate (S. 2338) late last year.

In response to the rapid evolution of the reverse mortgage business—including new products, new trends and HUD’s increased oversight of the HECM program—NRMLA has scheduled regional conferences in Denver and Philadelphia early next year to focus on compliance, risk management, best practices and fraud prevention issues.

As the 2007 Annual Meeting & Expo approaches, NRMLA is pleased to report that our projected attendance is approaching a record 1,100 mortgage professionals, up from 850 last year.

NRMLA is pleased to report that the Senate Banking Committee passed FHA modernization legislation on September 19th that includes our primary HECM provisions.

Although Congress adjourned for the summer without voting on an FHA modernization bill, NRMLA is hopeful that the House of Representatives will act quickly once lawmakers reconvene after the Labor Day holiday.

In late June, NRMLA, with consulting assistance from The Hollister Group, Washington, D.C., launched the first market indicator that collects critical market, housing and demographic data to track and project reverse mortgage market potential.

At a public symposium on safeguarding homeownership, HUD Secretary Alphonso Jackson said reverse mortgages are playing a critical role helping seniors stay in their homes, and that he personally recommended the program to his older siblings.

NRMLA's leadership approved a 2007 budget during our Annual Spring Board of Directors Meeting in Washington, D.C., April 24-26, that includes funding to implement a professional designation program.

House Democrats and Republicans introduced competing bills to modernize the Federal Housing Administration and its Home Equity Conversion Mortgage (HECM) program.

President Bush signed into law a continuing resolution (H.J. Res. 20) on February 15 that funds most of the federal government thru 9/30/07, and "suspends" the HECM cap until then, as well.

Despite some last-minute meetings between NRMLA and congressional staff, the 109th Congress adjourned on December 9 without increasing the Home Equity Conversion Mortgage (HECM) volume cap or other program enhancements contained in the FHA Modernization bill.

Now that the Democrats have seized control of Congress, it's important that you understand who the key housing policymakers will be in both chambers when the 110th Congress convenes in January—especially if you are a constituent.

The government's top housing official told attendees at the NRMLA Annual Meeting & Expo that FHA will not remain the dominant player in the reverse mortgage market for much longer, which, he said, is okay with him.

The U.S. Department of Housing and Urban Development will be issuing several mortgagee letters in the near future that make beneficial changes to the FHA reverse mortgage program, according to Meg Burns, Director of HUD's Single Family Program Development Division.

The U.S. Department of Housing and Urban Development endorsed 7,572 reverse mortgages in June and 55,659 thru the nine months of fiscal year 2006. FHA endorsed 43,131 loans for all of FY2005.

Peter Bell, President of NRMLA, will testify before the U.S. Senate Subcommittee on Housing and Transportation at a field hearing on reverse mortgages in Bucks County, Pennsylvania, on Friday, May 19.

The New York State Insurance Commissioner's Office has amended its regulations pertaining to the calculation of title insurance on reverse mortgages.

NRMLA Associate Director, Darryl Hicks, participated in a national stakeholders meeting convened by the U.S. Department of Housing and Urban Development on January 11 to seek feedback from housing advocates on developing the Department's strategic plan for the next five years.