[Congressional Record Volume 140, Number 6 (Tuesday, February 1, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      SUPPORT DISABLED HOMEOWNERS

                                 ______


                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                       Tuesday, February 1, 1994

  Mr. LIPINSKI. Mr. Speaker, with the increasing cost of medical care, 
disabled individuals across the country are struggling to make ends 
meet. For those who own their homes and fit the house rich and cash 
poor mold, this predicament is particularly frustrating. The Department 
of Housing and Urban Development [HUD] currently offers a loan program 
which enables elderly homeowners to convert the equity in their homes 
to cash. Unfortunately, many disabled homeowners who would benefit from 
this program are currently unable to participate.
  The Federal Housing Administration [FHA] insured home equity 
conversion mortgage, commonly known as the reverse mortgage, allows an 
elderly homeowner to borrow against the equity of his or her home and 
thereby free up cash for home improvements, medical costs, and other 
living expenses. Reverse mortgages are the opposite of traditional 
mortgages in the sense that the borrower receives monthly payments from 
the lender instead of making such payments to the lender. Loans do not 
have to be repaid until the homeowner moves from the home, sells the 
home, or dies. Under current law, homeowners must be 62 years of age or 
older to be eligible for this program.
  I have introduced legislation which simply expands the eligibility of 
the reverse mortgage program to include homeowners who are at least 50 
years of age and disabled or blind.
  The reverse mortgage program has proven to be a viable option for the 
elderly--it would also be of great benefit to disabled homeowners who 
are unable to work and are in need of financing to help pay for medical 
equipment and other basic necessities. Disabled persons, many of whom 
suffer from catastrophic illnesses, have special needs and face many of 
the same health problems as the elderly. For these reasons, disabled 
homeowners should be able to participate in the reverse mortgage 
program. The additional income generated each month would provide much 
needed assistance to these individuals and their families.
  I urge my colleagues to join my effort and cosponsor H.R. 3564, the 
Disabled and Blind Homeowners Home Equity Conversion Mortgage Act. This 
legislation is a simple yet significant way to help disabled homeowners 
improve their quality of life.

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