The FHA Modernization Bill has been reincarnated over the past year. Now that it is part of the wider economic stimulus and housing package, Congress needs to act upon this bill fast. While FHA Mod has many provisions regarding 203b FHA lending, I’m focusing on the HECM program only. I will focus on one part of FHA Mod. To Wit: HECM relief. As usual, the house’s version and the senate’s version differ in some respects and will have to be settled in conference committee.
With the demise of the proprietary program in many parts of the country, the HECM loan takes on more importance. I will limit my comments to the trinity of a higher national loan limit; HECM to be used for co-op units; and a cap on origination fees. Each of these things means more money for our seniors.
When politics gets in the way, melioration ceases. Sadly, Congress would rather continue the logrolling process than pass needed legislation. Congress would rather attach pork to the bills rather than do the peoples’ work. Logrolling is the process where I agree to vote for your bill if you agree to vote for my bill. Pork barrel spending occurs when legislation funds something that benefits a particular district, whose legislator thereby wins favor with local voters. The usual vetting of irrelevant amendments to existing bills is an accepted practice.
As I have vehemently stated in a prior blog, “We the People” has lost its meaning. Corporate America is the new master that congress serves. The poster child for such folly (and pork barrel spending) is the so called “Bridge to Nowhere” The proposed bridge would be nearly as long as the Golden Gate Bridge and high enough for cruise ships to pass underneath. The bridge would serve two islands in Alaska. One Island is inhabited by 8000 people and the other contains 50 denizens.
Gee, billions of taxpayer money is wasted each year. How about using some of these funds to pay for reverse mortgage counseling for seniors rather than make them pay for it out of their own pockets; How about using some of these funds to lower the mortgage insurance premiums on HECM loans; How about using some of these funds to cover costs under the Medicare or Medicaid program.
And while congress focuses on these earmarks, important legislation does not get passed. Enabling seniors to stay in their homes is important to our aging population. Passing FHA Mod is and should be a priority. Lowering closing costs is important. Empowering those that live in co-op apartments to use reverse mortgages is important. Providing more money through the use of a higher (single loan) limit is very important. There is nothing more important that enabling our elders to remain in their homes. Having access to as much equity is key to making this happen.
Seniors do not have lobbyists patrolling the halls of congress. What chance do our seniors have, or any of us have when close to 20,000 lobbyists are blocking the interests of “Us the people”. When will “We the people” make our ELECTED representatives responsible to the Peoples needs?
Comments