House votes to limit reverse mortgage initial draw

Published June 12, 2013 7:48pm ET



WASHINGTON (AP) — The Federal Housing Administration could limit the size of initial lump-sum payments that lenders offer reverse mortgage borrowers and require escrow accounts to cover taxes and insurance, under legislation the House passed Wednesday.

The bill, passed on a voice vote, is intended to help the government mortgage insurance agency work its way out of financial difficulty.

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