A recent decision made by the Senate helps improve reverse mortgage lending for the benefit of consumers. Prior to this decision, federal insurance programs have been limited in the number of reverse mortgages that they are allowed to underwrite. The decision eliminates this maximum cap on underwriting which means that additional programs can be made available.
The push for the decision came from two members of the Senate Banking Committe who recognized the value of the reverse mortgage for many seniors. Richard Shelby and Christopher Dodd both believe that the previous limits hindered seniors from obtaining the reverse mortgages that could assist them in funding their lives as they get older.
The decision is supported by a wide range of individuals and groups. This support comes from mortgage lenders, financial planners, senior citizen advisors, the National Association of Realtors and the National Association of Home Builders. And, of course, people who are interested in obtaining reverse mortgages also have significant reason to support the decision.
Question of the Day: What do you think is behind the motivation for the Senate to support this action?
