For the second time in two weeks, NRMLA President Steve Irwin testified before the Maryland Assembly in favor of a reverse mortgage bill that would help expand reverse mortgage product options.
This week, Irwin spoke in favor of House Bill 1196 before the House Economic Matters Committee. This is a companion bill to Senate Bill 457, The Reverse Mortgage Loans Act, which Irwin testified in favor of on February 16 in front of the Senate Finance Committee.
Both bills – while retaining important consumer protections – would clarify that private, non-FHA-insured reverse mortgages need not comply with every FHA HECM program guideline as currently required by the Maryland Reverse Mortgage Loan Act of 2010.
Due to the structural differences between HECMs and private-label reverse mortgages, no company currently offers the latter in Maryland. If these bills become law, it’s anticipated that more companies that offer proprietary reverse mortgages will provide them in Maryland.
NRMLA will continue to work with Maryland lawmakers to educate them about reverse mortgages and respond to questions they have with both bills.