From the Office of State Senator John Carona

FOR IMMEDIATE RELEASE
March 18, 1999
CONTACT: John Krueger, 512/463-0116

SENATE PASSES REVERSE MORTGAGE FIXES BY SENATOR CARONA

(AUSTIN)--The Texas Senate today unanimously approved SJR 12 by Senator John Carona (R-Dallas) which fixes problems with the Texas Constitution regarding reverse mortgages. "Two years ago, when Texans approved home equity, senior citizens believed they would have access to reverse mortgages," Senator Carona stated, "But this soon became an empty promise as conflicts were discovered between the Texas Constitution and federal regulations."

SJR 12 makes the necessary changes to bring the Texas Constitution in conformity with federal Housing and Urban Development (HUD) and Fannie Mae guidelines governing reverse mortgages. In fact, representatives from Fannie Mae, which purchases more than 90 percent of these loans nationwide in the secondary market, testified at a recent Senate State Affairs Committee hearing that they would participate in Texas with the changes made by SJR 12. Senator Carona explained, "Seniors in Texas are missing out on the opportunity to live more comfortable lives through a reverse mortgage that seniors in 49 other states currently enjoy. This resolution will make reverse mortgages a reality for Texas seniors as well."

SJR 12 must next be approved by the House of Representatives before it can be presented to Texas voters on the November ballot.

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