NRMLA’s Steve Irwin on political change and the 2025 HECM cap

2 weeks ago

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The reverse mortgage industry is preparing for the annual meeting in San Diego

The reverse mortgage industry has had an eventful year, and the National Association of Reverse Mortgage Lenders (NRMLA) is poised for another year of change according to Steve Irwin, its president. With political changes on the horizon, a debate on some key features of the Home Equity Conversion Mortgage (HECM) program and work to be done, Irwin sat down with HousingWire‘s Reverse Mortgage Daily (RMD) to discuss these and other important industry topics.

Change is something of a constant in the political world, and because the HECM program represents a public-private partnership, new administrators of the program will step into their roles in the coming month. We talk about this, recent changes to the 2025 HECM limit and more in this part of the RMD interview.

Political changes are coming, but housing is a bipartisan battle

“There is a change in governance and a change in control of the House of Representatives and the Senate comes,” he said. “But as I have said before, the housing problems are deep and cut across party lines. We know that part of the Republican Party’s published platform is a desire to support policies that help seniors live in their homes and maintain financial security.”

Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA). — Steve Irwin

One reason Irwin is optimistic about what that could mean for the HECM program is because it also fits into the program’s broader goals of serving older Americans, he explained.

“For the right people at the right time and under the right circumstances, that is the FHA-insured HECM program,” he said. “NRMLA has always remained close and developed relationships on Capitol Hill on both sides of the aisle, and we will continue to do so with this change.”

One specific change Irwin is looking at is the change in leadership at the Senate Banking Committeeand the association will seek to strengthen key relationships. In fact, that work has already begun, he said.

“I’ve already had two meetings on Capitol Hill about the HECM program,” he said. “Through these meetings, I intend to ensure continued support for this vitally important program, and that is the case in every respect.”

The 2025 HECM limit

In November the Federal Housing Administration (FHA) has announced that the HECM limit would increase to more than $1.2 million by 2025, and some industry professionals have debated the usefulness of such a limit. But Irwin says that recognition of the rise in home prices and the adjustments that come with government lending programs should of course include the HECM.

“We talked about the increase in house prices and its contribution to the soundness of this program,” he said. “The fact is that the appreciation remains positive. It may be subdued, but people’s home values are rising, and it just makes sense that those older homeowners at the higher end of the value spectrum should be able to [access that equity]. You know this limit – which is actually a claim amount, but becomes a credit limit – it makes sense to me that it would increase again.

How much further it could rise is hard to say because at that point it becomes a risk assessment for HUD and FHA, he said.

“But I’m happy to see that as people’s homes appreciate, they can benefit from a much larger share of their home’s value when assessed for loan qualification.”

Potential HECM program changes

Political changes may also bring new priorities for managing the HECM program. For example, at the end of the first Trump administration, the administration floated the idea of reinstating regional lending limits for HECM and eliminating HECM-to-HECM refinancing transactions.

Regional borrowing limits often seem to come up as a debated HECM program reform, despite the fact that NRMLA has long argued that regional borrowing limits for the HECM program are inappropriate. Both the first Trump and Biden administrations tried to propose reinstating it. The industry, with NRMLA playing a leading role, successfully lobbied for a national borrowing limit for the HECM program in the mid-2000s.

Irwin reiterated the NRMLA’s opposition to such a plan.

“Regional borrowing 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 repairs or modifications to the home so that an older homeowner can age in place effectively are the same wherever you live.”

Regional limits, Irwin argues, are a progressive mortgage concept “because of the different higher-priced areas in the country,” he said. “A senior living on a fixed income faces expenses that do not adjust regionally, and there is no reason for a regional borrowing limit for this program. I don’t see it going anywhere, but we should absolutely oppose it and educate lawmakers on why we stand by our position.”

If the Trump administration revives a proposal to eliminate HECM-to-HECM refis, Irwin said that is also something the association cannot support.

“Why would a government oppose a consumer’s choice to take advantage of additional shares that may be available, or to lower interest rates?” Irwin asked rhetorically. “That limits the borrowing power, and I don’t know if that is feasible. That said, I absolutely think there are opportunities to reexamine the initial mortgage insurance premium (MIP) structure for refinancing activities, and I look forward to having those conversations with HUD.”