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 eligibility requirements for such insurance requirements that the mortgage shall: (1) have been made and held by a mortgage approved by the Secretary; (2) have been executed by an elderly homeowner; and (3) be secured by a one-family residential dwelling occupied by the mortgagor.
Provides that each mortgagee of a mortgage insured under this Act shall be required to give the homeowner, at the time of a loan application, a written explanation of the features of the home equity conversion mortgage.
Prohibits the Secretary from insuring a mortgage pursuant to this Act after September 30, 1988. Sets the total number of mortgages which may be insured under this Act at 1,000.
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.
Requires the Secretary to evaluate and report to the Congress by March 1, 1988, on the program authorized under this Act.
Introduced in House
Introduced in House
Referred to House Committee on Banking, Finance and Urban Affairs.
Referred to Subcommittee on Housing and Community Development.
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