Senate Spending Bill Extends Higher Reverse Mortgage Limits

The Senate looks like it’s ready to pass a Continuing Resolution on Wednesday, which is needed in order to avoid a government shutdown before the new fiscal year begins Oct. 1st.

The bill would also extend the $625,500 loan limit for reverse mortgages insured by the Federal Housing Administration according to a draft summary released on Tuesday.  Additionally, current loan limits for FHA, Fannie Mae, and Freddie Mac would be extended through FY 2011.

“We are glad to see that common sense has prevailed and that Senate appropriators have responded to our appeals to retain the current loan limits,” said Peter Bell, President of the National Reverse Mortgage Lenders Association in an email to RMD. “This provision still has a few more hurdles before the continuing resolution becomes law, so we’re not entirely home free on this yet.”

The House would still have to pass an identical version of the Senate bill before President Barack Obama could sign it into law.

The continuing resolution, which will fund most existing programs at current spending levels through Dec. 3, reduces overall funding by $9 billion.

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