TheWeekInCongress.com

Week Ending December 16, 2005

H.R.2892 To amend section 255 of the National Housing Act to remove the limitation on the number of reverse mortgages that may be insured under the FHA mortgage insurance program for such mortgages.

BRIEF

Elderly homeowners with and FHA mortgage can benefit from what are know as conversion or ‘reverse’ mortgages but the amount that can be issued is limited. The bill raises the limit on conversion mortgages allowed.

Conversion mortgages are known as reverse mortgages because the process of paying monthly mortgage payments to a lender is reversed and the lender pays monthly (or in lump sum) to the owner. The money must be repaid when the house sells.

Sponsor: Representative Michael G. Fitzpatrick (R-PA-8^th)

Vote: Passed House by voice vote December 14, 2005.

Cost to the taxpayers: Offsetting collections (credits) would be increased by $9 million in 2007 and $142 million through 2010.

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