A new "housing rescue" bill was signed into law by the President last week and everyone is still talking about it. It's considered to be primarily a good thing but many are concerned that it can have negative impacts that we simply can't foresee at this time. In other words, the problems with the mortgage industry are not over yet despite attempts by legislators to improve the situation for Americans.
However, there is one part of the housing bill that doesn't seem to pose too many issues for people - the reverse mortgage aspect of the bill. The bill addressed limitations on reverse mortgage loans and allowed for an increase in the amount that home owners can borrow. The amount open for borrowing is still based on the value of the home and the equity available but the maximum borrowable by law has increased.
It makes sense that the reverse mortgage part of the housing bill would be the least problematic for people. After all, the reverse mortgage industry has managed to stay strong despite all of the problems that the rest of the mortgage industry has faced in recent years.
Question of the Day: How will reverse mortgages benefit the overall impact of the housing rescue bill?
