Matheson Bill Saves Housing Program for Seniors
Tuesday, January 16, 2007Jan. 16, 2007
FOR IMMEDIATE RELEASE
Matheson Bill Saves Housing Program for Seniors
Washington D.C.-Congressman Jim Matheson said senior citizens who tap into their home equity with "reverse mortgages"-in order to remain in their homes but gain income-will keep that option, if a House-passed bill can now be approved by the Senate. Matheson's bill - H.R. 391-passed the House unanimously today.
A reverse mortgage is a unique loan that enables senior homeowners to stay in their homes and remain financially independent by converting part of the equity without having to sell the home, give up title or take on a new monthly mortgage payment.
Matheson said the program's growing popularity threatened its survival, with the number of reverse mortgage loans approaching the statutory volume cap on the number of loans that the Federal Housing Administration (FHA) can insure.
"My bill waives the cap and allows the program to continue, while we work to pass legislation that permanently eliminates the cap," said Matheson. "This program was created to serve our seniors who may be "cash poor" but "equity rich". The majority of loan recipients are elderly widows, who may use the money on health care, medicine, home repairs, or other needs."
Groups such as AARP strongly support the measure, noting that growing demand continues to push right up against the existing statutory limit on the number of active loans that can be insured, preventing elderly homeowners from using the program.
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