NRMLA Seeks Expanded Reverse Mortgage Fee Exemption from D.C. Council

The National Reverse Mortgage Lenders Association (NRMLA) has formally requested that the D.C. Council modify proposed legislation to extend a foreclosure prevention fee exemption to all reverse mortgage products. In an October 6 letter to Councilmember Robert C. White Jr., NRMLA President Steve Irwin addressed D.C. Council Bill B26-0819, known as the Ownership and Wealth-building for our Neighbors (OWN) Omnibus Amendment Act of 2026.

Introduced on September 28, the bill includes a $100 foreclosure prevention fee on residential mortgage originations, with an exemption specifically for reverse mortgages issued to borrowers aged 62 or older. NRMLA argues that this age restriction is inconsistent with the legal definition of reverse mortgages under the Truth in Lending Act (TILA) and Regulation Z, which focuses on loan structure rather than borrower age. The association highlighted that while the FHA's HECM program has an age requirement, proprietary reverse mortgage products are available to younger borrowers, including in the District of Columbia. Imposing the fee on these younger reverse mortgage users would undermine the exemption's purpose of supporting homeowners utilizing equity for living expenses. A public hearing for the bill is scheduled for October 22, impacting lending and property financing in the District.