Released earlier this week, Presdient Obama’s budget projects a $1.65 trillion deficit this year and includes $1.1 trillion in deficit-reduction measures over the next 10 years, with two-thirds of those savings coming from spending cuts and one-third from tax increases.
While the budget shows the HECM program no longer requires a subsidy from Congress, it also projects the Federal Housing Administration will endorse $20 billion of reverse mortgages in FY 2012, down 17.6% from the continuing resolution estimates for 2011.
While the budget process is a long way from over, it’s the first time in two years the budget didn’t include a subsidy request for HECM program. During the economic downturn, the Office of Management and Budget included a $798 million subsidy request for FY 2010, followed by a $250 million request for FY 2011.
Looking for more reverse mortgage charts? Check out the Chart of the Day Series and pervious posts here.
