Reuters, December 15th, 2006
WASHINGTON – The U.S. House passed a bill late
Wednesday to eliminate the cap on federally insured reverse mortgages,
which allow the elderly to convert part of their home equity into
income without selling their houses.
The bill,
introduced by Pennsylvania Republican Rep. Michael Fitzpatrick, was
passed by the House but similar legislation has not been moved out of
committee in the Senate.
Currently, the number of reverse
mortgages insured by the Federal Housing Administration under the Home
Equity Conversion Mortgage program is capped by Congress at 250,000.
The FHA insures 90 percent of all U.S. reverse loans.
Fitzpatrick’s legislation would eliminate the cap.
