There may have been 3,000 newspaper stories ran this year about doomsday “subprime fallout” woes, but there’s only one good comic:

We think it’s good to have a laugh every now and then, even if it’s about a serious problem.

Congress is set for a showdown over the country’s ongoing housing market crisis when it returns after Labor Day. We strongly urge voters to consider contacting their elected representatives and voicing support for an overhaul of the Federal Housing Administration, which could help end the spiraling subprime mortgage fallout.

Officials are set to debate the merits of a proposed modernization of the FHA, an arm of the Department of Housing and Urban Development that has insured loans for millions of homeowners since the 1930s. Backers of an overhaul insist the legislation would allow the FHA to insure more mortgages by relaxing regulations and help the country’s neediest homebuyers get loans or refinance unwieldy ones.

Government officials and real estate industry trade groups say existing law hampers the FHA, according to a recent story in Forbes magazine. For example, the size of mortgages the FHA insures is often too small in expensive areas of the country, meaning borrowers typically have to turn elsewhere for help.

As for the Forbes article notes:

“The FHA wants to raise the maximum mortgage amount it can insure in high areas to the same level as loans backed by the government-sponsored mortgage companies, Fannie Mae and Freddie Mac - $417,000 this year. Right now, the FHA’s limit is $362,790 in those areas.

“A bill to do so passed a House committee in May and is expected to be taken up by the full House this fall. A similar bill overwhelmingly passed the House last year. Meanwhile, Democrats and Republicans on the Senate Banking Committee have been working out the details of their own bill, though a final deal has yet to be reached.”

This legislation would also mean the FHA could handle thousands of new mortgage refinances a year. While it expects to refinance about 120,000 loans this year, the agency remains handcuffed by current rules and stipulations. A revamped FHA could open the door to more homeowners on the brink, giving them a solid chance of keeping their homes from default or foreclosure.

We at Mortgage Loan Place believe an FHA overhaul is overdue. Contact your U.S. representative today to voice your support of FHA modernization.

There’s been a lot of talk and media coverage as of late about reverse mortgages and the opportunities they present senior citizens. In all, American borrowers will assume about 120,000 of the most popular reverse mortgages this year, according to the National Reverse Mortgage Lenders Association.

With reverse mortgages, homeowners receive a lump sum, a monthly amount or a line of credit and don’t have to repay the debt for as long as they live in their homes. Dozens of the national organizations and advocacy groups, such as the AARP and the National Council on Aging, have touted these unique mortgages as way to use equity to cover costs such as health-care and other long-term needs.

The reverse mortgage loan has appeal to a homeowner that has been in their home a long period of time. When considering a reverse mortgage, it is important to investigate the details of the mortgage. Upfront costs can be high when the loan is very high, and the pay off time is over a long period of time as opposed to a shorter period of time.

With an FHA-insured reverse mortgage, you must pay a 2 percent loan origination fee plus a 2 percent fee for mortgage insurance.

To learn more about reverse mortgages and how they can help seniors, contact one of the experts at Mortgage Loan Place today.