From the Office of Utah Congressman Jim Matheson
MATHESON NEWS
Second Congressional District
For Further Information
Alyson Heyrend: (801) 455-5593 (cell)
www.house.gov/matheson
December 14 , 2005
FOR IMMEDIATE RELEASE
Matheson Says Reverse Mortgage Bill Eases Housing Worries for Seniors
Washington DC-Congressman Jim Matheson said passage today of legislation in the House to lift restrictions on the number of "reverse mortgages" is a step towards helping Utah seniors with housing problems. Matheson is a cosponsor of HR 2892-the Reverse Mortgages to Help America's Seniors Act-overwhelmingly approved in the House today.
A reverse mortgage is a lending practice that allows seniors to use their home to stay in their home. It is a type of home loan that lets a homeowner convert the equity in his/her home into cash without having to sell the home or give up title. Reverse mortgages can give older Americans greater financial resources to supplement Social Security, meet unexpected medical expense, undertake home improvements and more.
"The number of Utah seniors who struggle to make ends meet and maintain adequate housing conditions is growing, and I'm concerned about that trend," said Matheson. "Especially the age group 85 and over, who may be in frail health and have the greatest need for flexibility in meeting their expenses. The primary beneficiaries of this program are elderly widows."
Matheson said this bill amends the National Housing Act to remove the aggregate and insurance benefit limitations on the number of reverse mortgages for elderly homeowners that may be insured by the Federal Housing Administration (FHA).
Groups such as AARP strongly support the measure, noting that growing demand has pushed right up against the existing statutory limit on the number of active loans that can be insured, preventing elderly homeowners from accessing the program.
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Alyson Heyrend
Communications Director
240 East Morris Ave. #235
South Salt Lake, UT 84115
(801) 486-1236 (phone)
(801) 455-5593 (cell)
(801) 486-1417 (fax)