HR 1473: Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Enrolled Bill [Final as Passed Both House and Senate] - ENR)
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Sec. 2245. Notwithstanding section 1101, the level for 'Department of Housing and Urban Development, Housing Programs, Housing Counseling Assistance' shall be $0.
The National Council on Aging has posted a commentary on the funding bill just passed by both houses of the US Congress, publishing it just prior to the passing of HR 1473. (As noted, the Council is one of the agencies that provide this counseling)
Move Will Increase Risks and Financial Burden for Older Vulnerable Homeowners
Legislation scheduled to pass Congress this week would eliminate all funding, totaling $88 million, for the Housing & Urban Development Department’s (HUD) Housing Counseling Program. These cuts include all funding for federally mandated reverse mortgage counseling. This budget was zeroed-out as part of the FY 2011 Continuing Appropriations Act (H.R. 1473).
In order to obtain an FHA-insured reverse mortgage, which currently represents 95% of the market, federal guidelines mandate that all borrowers must first go through HUD-approved reverse mortgage counseling. The National Council on Aging (NCOA) is one of eight HECM Intermediaries that provide this counseling service nationwide.
"This unique counseling helps older homeowners understand the costs, benefits, and risks associated with these loans," said Barbara Stucki, vice president for Home Equity Initiatives at NCOA. “Without this funding, the older Americans who can least afford it may have to pay for this critical advice out-of-pocket."
Over the past three years, NCOA has worked with HUD and the reverse mortgage industry to improve the quality of counseling sessions. In addition, the loss of the counseling funding will impact counselors’ ability to help reverse mortgage borrowers who are in default and at risk of foreclosure.
"In these difficult economic times, people have to increasingly tap their home equity to make ends meet," said Stucki. "This new budget proposal is a major setback and increases the financial vulnerability of all older adults looking to use their home to stay at home."
NCOA urges Congress and the Administration to restore funding for this critical program for older adults in the upcoming FY 2012 budget discussions.
More Articles
- New York Times and Consumer Reports Articles on Reverse Mortgages and the FHA Proposal to Strengthen Reverse Mortgage Program
- White House Conference on Aging Forum and New Financial Coaching Initiative
- Questions You Always Wanted to Ask: Reverse Mortgages
- Look Ahead to November: Marijuana, Gambling, Reverse Mortgages, Minimum Wage and GMOs on the Election Ballot
- Just Put Me in the Wheelbarrow
- HUD Sued For Illegal Reverse Mortgage Foreclosure Actions
- A New Reverse Mortgage Product and NCOA's Use Your Home to Stay at Home Booklet:
- FAQs for Seniors on Health Care Reform
- How Reverse Mortgage Lenders Put Older Homeowners’ Equity at Risk
