[Congressional Record Volume 151, Number 168 (Thursday, December 22, 2005)]
[Extensions of Remarks]
[Page E2636]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            REVERSE MORTGAGES TO HELP AMERICA'S SENIORS ACT

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                      Wednesday, December 14, 2005

  Mrs. MALONEY. Madam Speaker, I rise in support of H.R. 2892, the 
Reverse Mortgages to Help America's Seniors Act.
  By removing the cap on the number of these loans that HUD can 
guarantee, this bipartisan bill allows the program to grow with demand.
  A reverse mortgage is a creative financing tool that allows seniors 
to take some of the equity out of their homes without having to sell 
the home, or take on a new monthly mortgage payment.
  Because it allows seniors to remain in their homes and provides them 
an income, it has proved very popular. These funds can be used for the 
everyday demands that many seniors face and that can become 
particularly urgent for those surviving on a fixed income, such as 
paying off existing debts, paying health care expenses, or paying daily 
living expenses.
  When the statutory cap of 150,000 loans was reached this spring, 
there was consternation that the program would be suspended even though 
it is a win-win: it makes money for taxpayers and benefits seniors.
  As those events demonstrate, the cap serves no useful purpose and 
should be removed. There is no reason to deny seniors this benefit if 
they decide it works for them, especially since it makes substantial 
money for the government--almost $40 million annually after the first 
year.
  I urge my colleagues to vote for H.R. 2892 and make this financial 
tool available to any senior who wants to use it.

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