Stimulus Bill Compromise Includes Higher HECM Loan Limit

NRMLA – reversemortgage.org

NRMLA is pleased to announce that we have learned that the compromise package emerging from the House-Senate conference committee includes the House language setting the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 — for the balance of 2009 only. (Congress would have to act on it again before this year is out to extend it beyond ’09.) 

The conference report must still be voted on separately by the House and the Senate, so it is not yet entirely final.

The House adopted a non-binding motion on Tuesday that directs the conference report be posted on the Internet for 48 hours before the House votes. That would put the House floor vote the evening of Feb. 14, at the earliest, if the conference report is posted today.

Once both houses of Congress approve the conference report, it will be sent to President Obama for his signature.

After the President signs the bill, HUD will have to issue a Mortgagee Letter to implement the change. From our previous experience, we have learned that there is no telling exactly how long it will take for them to get this done, but with the temporary nature of this provision, I hope that they will act expeditiously.

We are still waiting to verify that this is correct by seeing the actual conference report.

Peter H. Bell, President