WASHINGTON (6/13/13)--The Reverse Mortgage Stabilization Act (H.R. 2167), which would allow the Secretary of Housing and Urban Development (HUD) to alter the Federal Housing Administration's (FHA) "reverse mortgage" insurance program, passed the U.S. House by voice vote on Wednesday.
The bill is intended to help HUD make quicker changes to its Home Equity Conversion Mortgage (HECM) program. Home Equity Conversion Mortgages (HECMs) are federally insured reverse mortgages backed by the U.S. Department of Housing and Urban Development.
Currently, HUD changes to this program require a lengthy 18-month regulatory process before they can become final. The bill was introduced by Reps. Mike Fitzpatrick (R-Pa.) and Denny Heck (D-Wash.), members of the House Financial Services Committee.
H.R. 2167 would allow the HUD secretary to make administrative and policy changes to the Home Equity Conversion Mortgage Program through a mortgagee letter "when immediate changes are necessary to improve the fiscal safety and soundness of the program," according to a House Financial Services Committee release announcing the vote.
The bill requires Senate approval before it can be signed into law.
For more on the bill, use the resource link.