At least for the time being.In an article that appeared on Reverse Mortgage Daily, Congress has decided to extend the bill suspending the cap placed on Reverse Mortgage Programs that was set to expire on September 30th of this year. The last time cap on Reverse Mortgage Programs came into question was last year, when Congress decided once again to extend the suspension of the cap on the amount of Reverse Mortgage Programs that can be originated and completed.
The initial Reverse Mortgage cap at 2,500 began in 1987 under the Home Equity Conversion Mortgage statue but was raised from 1990 to end of 1995 to 25,000 loans. Recent raises have set the current cap at 275,000 since 2006.The current decision come at the heels of the debate that began in March concerning the potential extension of the suspension on reverse mortgage program caps. One of consequences of the reverse mortgage cap was the fact that it could deter some professionals from proposing a reverse mortgage program if the cap should be reinstated once again, potentially killing any momentum in the business. The decision to continue the suspension is a sign of faith in the Reverse Mortgage Program, however, motivating industry professionals to continue to offer reverse mortgages. At PS Financial Services, a reverse mortgage company in Florida, we continue to work with our clients to find the Reverse Mortgage Program that best works for our clients’ situation, not the other way around. Contact us here or give us a call at (888) 845-6630 to see if a reverse mortgage program is right for you. There is no pressure for those who inquire.