[Congressional Record Volume 151, Number 116 (Thursday, September 15, 2005)]
[Senate]
[Page S10122]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself and Mr. Crapo):
  S. 1710. A bill to amend section 255 of the National Housing Act to 
remove the limitation on the number of reverse mortgages that may be 
insured under the FHA mortgage insurance program for such mortgages; to 
the Committee on Banking, Housing, and Urban Affairs.
  Mr. SANTORUM. Mr. President, I rise today to introduce a bill to 
remove the current cap on the number of reverse mortgages that can be 
insured by the Federal Housing Administration (FHA). This legislation 
will ensure that eligible seniors have access to this important tool 
that allows them to continue to meet their expenses at a time when they 
have a reduced income. I am very pleased to be joined in this effort by 
Senator Crapo, who is an original cosponsor of this legislation.
  I represent a State with the second largest senior population in the 
United States. Many of these seniors have worked hard throughout their 
years and own their own homes. Many of them are also at a time in their 
lives when they are having trouble making ends meet. Reverse mortgages 
allow senior homeowners to convert part of their home equity into tax-
free income. The homeowner receives payments from the lender rather 
than making monthly payments as with a regular mortgage. The homeowner 
may receive the money in one lump sum, fixed monthly payments, a line 
of credit, or a combination of these. These funds can be used by 
seniors to pay for expenses, while allowing them to stay in their own 
homes as long as possible. A reverse mortgage helps make services like 
home healthcare, adult daycare and assisted living a possibility for 
more American seniors. It can also be used to pay for needed home 
repairs and other living expenses.
  Unfortunately, there is currently a statutory limitation on the 
number of FHA-insured reverse mortgages that can be issued. This cap 
has already been increased as the aggregate number of FHA-insured 
reverse mortgages came close to reaching the cap. Unless it is removed 
completely, many seniors may be denied the use of this program, which 
can help to make their later years more stable and comfortable. For 
this reason, I am pleased to introduce this legislation to permanently 
remove the current cap.
  I am also pleased to be working on this proposal with my colleague 
from Pennsylvania, Representative Michael Fitzpatrick, who has 
introduced this legislation in the House. I am very hopeful that the 
109th Congress will act to pass this important legislation.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1710

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Reverse Mortgages to Help 
     America's Seniors Act''.

     SEC. 2. ELIMINATION OF CAP ON NUMBER OF MORTGAGES INSURED.

       Section 255 of the National Housing Act (12 U.S.C. 1715z-
     20) is amended--
       (1) in subsection (g), by striking the first sentence; and
       (2) in subsection (i)(1)(C), by striking ``limitations'' 
     and inserting ``limitation''.
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