Home Equity Conversion Mortgage Insurance Act

Summary

Home Equity Conversion Mortgage Insurance Act - Amends the National Housing Act to authorize the Secretary of Housing and Urban Development to insure a home equity conversion mortgage and to make commitments for the insurance of such mortgages prior to the date of their execution or disbursement if such mortgages: (1) may improve the financial situation or otherwise meet the needs of elderly homeowners; (2) can be developed to include safeguards for mortgagors to offset the special risks of such mortgages; and (3) have a potential for acceptance in the private market. Includes among insurance eligibility requirements that the mortgage shall: (1) have been made and held by a mortgagee approved by the Secretary; (2) have been executed by an elderly homeowner; (3) be secured by a one-family residential dwelling occupied by the mortgagor; (4) able to be prepaid without penalty; and (5) have a capped interest rate. Sets forth required mortgage disclosure and mortgagor information service provisions, including the provision of alternate home equity conversion options and related tax and financial information. Prohibits the Secretary from insuring a mortgage pursuant to this Act after September 30, 1991. Sets the total number of insurable mortgages under this Act at 2,000. Permits the Secretary to take any action necessary to provide a mortgagor with funds due pursuant to an insured mortgage or ancillary contract which have not been paid by the party responsible and to obtain reimbursement of such payments from any source. Prohibits the Secretary from insuring a home equity conversion mortgage that does not provide specified safeguards to prevent the displacement of the homeowner. Requires the Secretary to provide the Congress with two specified interim program reports.

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1 official file

• Introduced in House

  summary · EN · 4 February 1987

  Open at official source

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