Appropriators Shore Up FHA Reverses

House and Senate appropriators have included a provision in a continuing funding resolution that should keep the Federal Housing Administration reverse mortgage program running until Sept. 30.The provision lifts a 275,000-loan limit on the number of reverse mortgages the FHA can insure under its home equity conversion mortgage program, and it is designed to prevent a shutdown. Reverse mortgage lenders are very concerned that originations could hit the loan limit before Congress approves the continuing resolution, which is supposed to fund the federal government for the rest of the 2007 fiscal year. The House has passed a separate bill (H.R. 391) that would temporarily suspend the 275,000-loan cap until Feb. 15. However, that bill has encountered resistance in the Senate.