Austin Scott: “H.R. 391 would prevent any shutdown of the Federal Housing Administration, FHA, reverse mortgage program. This program…”

“H.R. 391 would prevent any shutdown of the Federal Housing Administration, FHA, reverse mortgage program. This program is also known as the Home Equity Conversion Mortgage program, or the HECM program. A reverse mortgage is a unique loan that enables senior homeowners to remain in their homes and remain financially independent by converting part of their home equity into income without having to sell their home, give up title, or take on a new monthly mortgage payment. Reverse mortgage is an apt name because the payment stream is reversed. Instead of making monthly payments to the lender, as with a regular mortgage, the lender makes payments to the homeowner. Payments to the borrower come in the form of a lump sum, monthly payments, a line of credit, or a combination thereof. Thus, the funds can be adapted to the financial needs of the senior taking out that particular loan.”