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New Law Extends Protections for Reverse Mortgages

A lifeline’s on the way for delinquent reverse mortgage borrowers in the D.C. area, according to the Council of the District of Columbia’s Code.

The “Reverse Mortgage Insurance and Tax Payment Program Temporary Amendment Act of 2020” was passed by The Council of the District of Columbia, the local government’s legislative branch, according to Reverse Mortgage Daily. The purpose is to extend the Reverse Mortgage Insurance & Tax Payment Program (ReMIT) in the area. The District of Columbia Housing Finance Agency (DCHFA) launched it in last year.

The new law is to extend protections for reverse mortgage borrowers who have entered delinquency.

The DCHFA Reverse Mortgage Insurance and Tax Payment Program has been extended—on an emergency basis—by the District of Columbia Housing Finance Agency Act, called the "Reverse Mortgage Insurance and Tax Payment Program Emergency Amendment Act of 2020", according to Code. Condominium and homeowners association fees also were included as greenlighted uses of the financial assistance by the program.

Thirty-two percent of Americans did not make a full, on-time housing payment is July, according to Apartment List. This is up slightly from 30% in June.

The report added that missed payments are concentrated among renters, young and low-income households, and residents of dense urban areas.

During the first week of July, 19% of Americans had made no housing payment, while an additional 13% paid just a portion of their monthly bill.

However, of those that missed the payment in June, 89% said they paid that month’s bill as of the first week of July.

The report added that 43% of households earning between $25,000 and $75,000 did not pay their full housing payment in July.

Additionally, homeowners between the ages of 45-60 were found to miss the most payments at 22%. An additional 7% made a partial payment.

Apartment List’s survey said the share of homeowners concerned about foreclosures rose from 14% to 17%.

About Author: Chuck Green

Chuck Green has contributed to the Wall Street Journal, Washington Post, Los Angeles Times, San Francisco Chronicle, Chicago Tribune and others covering various industries, including real estate, business and banking, technology, and sports.

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