Legislation

NRMLA update on timing of budget proposal.

For the reverse mortgage business, the highlights of HUD’s proposed budget for fiscal year 2011 includes a subsidy of $250 million for the MMI/HECM fund, an increase in the ongoing annual Mortgage Insurance Premium (MIP) from .5% to 1.25% and a low-to-mid single digit cut in the principal loan limit with the higher end affecting older borrowers.

For those Congressmen who have had it with the healthcare town meeting circuses at home, we’re ready for you to come back to DC. We’re awaiting some big decisions when the Drama on the Hill autumn act begins.

There sometimes comes a tipping point when politics gets in the way of government, when talk trumps action—and when that happens someone, someplace has to shout, “Halt!”

GAO published a report today which concluded that reverse mortgage policy changes enacted under HERA have benefited lenders and borrowers. But risks remain.

NRMLA has prepared the following Legislative Briefing Paper for members to give their representatives in Congress when meeting with them in Washington, DC or in their home districts.

Below is a tracking chart showing all legislation introduced so far this year by state legislatures that impacts reverse mortgages.

NRMLA, in concert with government affairs staff from member companies, is meeting with state officials to address legislation introduced in Arizona, Florida and Maryland that impacts reverse mortgage lenders.

The NRMLA State Steering Committee has tackled several emerging issues in recent weeks. To begin with, new legislation from California presents some compliance challenges for reverse mortgage professionals as well as counselors.

NRMLA Seeks Your Questions Concerning the NEW California Reverse Mortgage Elder Protection Act of 2009.

The following memo was prepared by NRMLA's outside general counsel Weiner, Brodsky, Sidman, Kider, PC, and presented at the 2009 NRMLA Policy Conference in Washington, D.C.

Washington state recently passed legislation that may impact non-depository lenders, as well as the correspondents, subsidiaries and affiliates of depository lenders who make reverse mortgage loans in that state.

As we engaged with the industry on fixed rate HECMS, we were pleased that FHA issued Mortgage Letter 2008-08 regarding fixed rate HECM loans. We want to clarify a few important points.