American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

House passes reverse mortgage bill

December 16, 2005

Bill would remove limits on number of HUD-insured loans

Inman News

The Reverse Mortgage to Help America's Seniors Act, sponsored by Reps. Michael Fitzpatrick and Jim Matheson, amends the National Housing Act by removing the existing cap of 250,000 reverse mortgages that HUD can insure at any given time, the association said.

A Senate version of the bill introduced by Sen. Rick Santorum is pending approval, and both bills enjoy bi-partisan support in Congress and are endorsed by senior citizens' advocacy group AARP, according to the reverse mortgage association.

"NRMLA commends Reps. Fitzpatrick and Matheson for their leadership in getting this bill through the House of Representatives," said Peter Bell, President of NRMLA, in a statement.

"As the popularity of reverse mortgages continues to grow nationally, it's absolutely critical that the cap is removed to avoid a disruption in the marketplace," Bell said.

During the most recent federal fiscal year ending Sept. 30, HUD insured a 43,131 reverse mortgages, a record number, for a fifth consecutive year, the association said. The federally insured Home Equity Conversion Mortgage, or reverse mortgage accounts for 90 percent of all reverse mortgages made in the U.S., according to the reverse mortgage association.

When Congress created the HECM program in 1988, a cap was imposed so lawmakers could periodically monitor the program's performance and costs to the government, according to the association.

Now that the program has a track record, the association believes there's no continuing need for a cap because the HECM program generates sufficient funds to cover its costs through mortgage insurance premiums paid by borrowers.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their homes, without having to sell the home, give up title, or take on new monthly mortgage payments.

Loan proceeds can be used for any purpose, and taken out as a lump sum, fixed monthly payments, line of credit, or a combination.

The loan amount depends on the borrower's age, current interest rates, and the value and location of the home. A reverse mortgage does not have to be repaid until the borrower moves out of the home permanently, and the repayment amount cannot exceed the value of the home. After the loan is repaid, any remaining equity is distributed to the borrower or the borrower's estate.

Copyright 2005 Innam News

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment