Federal

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.

In his testimony last week before the Subcommittee on Housing and Community Opportunity, NRMLA President Peter Bell proposed a restructuring of the mortgage insurance premium collected by the Federal Housing Administration on all Home Equity Conversion Mortgages and removing the 10 percent reduction in principal limit factors.

Over the past week, we have been experiencing a whirlwind of activity around the HECM program, as well as all other FHA single-family programs.

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 President Peter Bell testified at a field hearing in St. Louis yesterday hosted by U.S. Senator Claire McCaskill (D-MO) on behalf of the Special Committee on Aging to discuss regulations in the reverse mortgage program.

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.

NRMLA's Congressional Relations Committee has developed the following presentation to help educate our members on the importance of political advocacy.

Following is a copy of Section 255 of the National Housing Act, which governs the HECM program.

As most NRMLA members know, the economic stimulus bill signed into law by President Obama today raises the single national loan limit for HECMs to 150% of the Freddie Mac loan limit. Currently, that would create a HECM limit of $625,500.

NRMLA is pleased to report that the compromise package approved by the House-Senate conference committee yesterday does indeed set the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 -- for the balance of 2009.

We are pleased to report that the economic recovery bill passed by the U.S. House of Representatives last night includes the provision we reported to you last week that would set the single national loan limit for the HECM program at 150% of the Freddie Mac loan limit.

We are pleased to announce that the draft of the economic recovery bill released by the House of Representatives late yesterday contains a provision that would set the single national loan limit for HECM at a higher level than $417,000--for the balance of 2009.

Back in early December, NRMLA President Peter Bell submitted a HECM issues paper to key officials from the Presidential Transition Team working on HUD matters and then was invited to provide a briefing two weeks later.

Earlier this afternoon, we participated in a telephone briefing on the new FHA Modernization legislation conducted by FHA Commissioner Brian Montgomery and his staff.

The following charts developed by FHA breakdown the various provisions of the HOUSING AND ECONOMIC RECOVERY ACT OF 2008 (HR 3221).

At 8:30 this morning, President Bush signed into law two bills, the Clean Boating Act of 2008 and, our long awaited, Housing and Economic Recovery Act of 2008.

NRMLA's Congressional Relations Committee has prepared the following presentation to help educate members on the legislative process.

Attached to this article is a summary of the final recommendations of the Medicaid Commission advising the Secretary of Health and Human Services on ways to modernize the Medicaid program so that it can provide high-quality health care to its beneficiaries in a financially sustainable way.