House Passes Stimulus Bill with Loan Limit Increase

We are pleased to report that the economic recovery bill passed by the U.S. House of Representatives last night includes the provision we reported to you last week that would set the single national loan limit for the HECM program at 150% of the Freddie Mac loan limit. Currently, the Freddie Mac limit is $417,000, so this bill would establish the HECM limit at $625,500.

The Senate is expected to bring its version of an economic recovery bill up for floor debate and a vote early next week. We do not expect a similar HECM provision to be included in the Senate bill.

That will leave us with the challenge of trying to protect this item from being stripped out of the bill during the negotiations to come to work out the differences between the House and Senate bills.

The goal right now is to conclude passage of this bill and present it to President Obama by February 16th.

Source:
Peter Bell, President
NRMLA