The reverse mortgage industry has had an eventful year, too National Reverse Mortgage Lenders Association (NRMLA) is gearing up for another year of change according to Steve Irwin, its president. With political changes on the horizon, debate over other aspects of the Home Equity Conversion Mortgage (HECM) program and work to be done, Irwin sat down with Irwin. HousingWireReverse Mortgage Daily (RMD) to discuss these and other major industry topics.
Change is a constant in the political world, and because the HECM program represents a public/private partnership, there will be new administrators entering their roles in the coming month. We talk about this, the latest changes to the 2025 HECM limit and more in this part of the RMD interview.
Political change is coming, but houses are divided
“There is a change in management, and a change in control House of Representatives as well as The Senate coming,” he said. “But as I said before, housing issues run deep and cut across groups. We know that part of the published platform of the Republican Party is the desire to support policies that help seniors stay in their homes and maintain financial security.”
The reason Irwin is optimistic about what that might mean for the HECM program is because it aligns with its broader goals of serving America’s seniors, he explained.
“For the right people at the right time and under the right circumstances, that’s an FHA-insured HECM plan,” he said. “NRMLA has always been close and building relationships on Capitol Hill on both sides of the aisle, and we will continue to do so through this transition.”
Another specific change Irwin is looking at is a change in leadership on the Senate Banking Committee, and the organization will seek to strengthen key relationships. In fact, that work has already begun, he said.
“I’ve already had two meetings on Capitol Hill on the HECM program,” he said. “Through those meetings, I intend to ensure continued support for this very important program, and it exists by all accounts.”
2025 HECM limit
In November, the Federal Housing Administration (FHA) has announced that the HECM limit for 2025 will increase to more than $1.2 million, and some industry experts have argued against the use of a limit that goes up that high. But Irwin says that realizing the increase in home prices and the adjustments it brings to the government’s lending programs should naturally include the HECM.
“We have been talking about the appreciation of house prices and your contribution to making this program standard,” he said. “It is true that appreciation is always good. It may be an approximation, but people’s home values are increasing, and it makes sense that those older homeowners at the higher end of the value spectrum should know [access that equity]. You know this limit – which is really the amount of the claim, but it becomes the lending limit – it makes sense to me that it’s going to go up again.”
How much it could go up is hard to say, because at that point it’s HUD and FHA’s risk assessment, he said.
“But I’m happy to see that since people’s homes appreciate it, they will be able to take advantage of the value of their home as they are tested to see if they are able to get a loan.”
Potential HECM changes
Political changes may also bring new priorities for managing the HECM program. At the end of the first Trump administration, for example, the administration floated the idea of restoring limits on regional HECM lending and ending HECM-to-HECM repurchase transactions.
State lending limits seem to come up as often as the HECM plan changes discussed, despite the fact that NRMLA has long argued that state limits on HECM plan loans are inappropriate. Both the first Trump and Biden administrations want to propose that they be reinstated. The industry, with NRMLA playing a leading role, successfully pushed for a national HECM loan limit in the mid-2000s.
Irwin reiterated NRMLA’s opposition to such a program.
“Regional loan limits for the HECM program are something we will absolutely oppose,” he said, should the proposal resurface in a second Trump administration. “The cost of durable goods and home repairs or modifications to enable an elderly homeowner to age effectively is the same no matter where you live.”
The regional limits, Irwin says, are a credit-advancing concept “because of the various high-value areas around the country,” he said. “A senior living on a fixed income faces fixed costs by region, and there is no reason for a regional limit on the loan for this program. I don’t see it going anywhere, but we’re going to have to totally oppose that and educate the lawmakers why we’re holding our position.”
If the Trump administration revives a proposal to end HECM-to-HECM repairs, Irwin said that is also something the organization will not support.
“Why should any management object to a consumer’s choice to use more equity that may be available, or lower interest rates?” Irwin asked in response. “That reduces borrowing power, and I don’t know if that’s happening. That being said, I think there is an opportunity to re-examine the original mortgage insurance premium (MIP) framework in the rehabilitation process, and I look forward to having those discussions with HUD.”
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