Proposed Bill Points to Reducing Reverse Mortgage Foreclosures
Congresswoman Maxine Waters has proposed a bill that if passed, could help prevent "unfair foreclosures" on homes of seniors who opted for a Home Equity Conversion Mortgage.
"Titled 'Preventing Foreclosures on Seniors Act,' the legislation focuses on reforms to HUD’s HECM program that would help borrowers and non-borrowing spouses of reverse mortgage borrowers avoid losing their homes," according to Reverse Mortgage Daily.
One aspect of the bill in particular looks at helping surviving, non-borrowing spouses. The bill has introduced reforms that would offer the surviving spouse the ability to remain on the property, granted they meet the eligibility to do so.
“Unfair foreclosures on seniors continue to be a problem in the Department of Housing and Urban Development’s reverse mortgage program. This bill makes key changes to help seniors who are vulnerable to foreclosure under the current program,” Waters said in a press release, according to RMD.
“It is critical that we take every possible step to ensure that seniors who take out reverse mortgages, and particularly their surviving spouses, do not unfairly lose their homes.”
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