A recent bill introduced to the house is aimed at eliminating the budget deficit created by reverse mortgages. According to the Federal Housing Association, there is a $5 million loss in reverse mortgages in the United States so far this year. The reserves in the FHA’s budget are depleting faster than ever leading to a possible injection of cash by the Treasury. This bill calls for a cap on the lump sums borrowers can request in-turn creating a more sound, stable model for lenders to follow. Along with lowering the amount a borrower can request in equity, lenders must conduct thorough risk-assessments of borrowers. The only way to create a financially sound program for seniors is to assess the possibility for default, which can be difficult due to the volatility of the housing market. While this bill is months away from implementation, it possesses the ability to curb the trend regarding defaults in the world of reverse mortgages and potentially change the media’s opinion on this type of loan.