The federal government has tightened the rules regarding reverse mortgages, making it harder for some seniors to get these types of mortgages and reducing the amount of their home’s value that they can tap. The new rules are an effort to strengthen the federal Home Equity Conversion Mortgage (HECM) program, which insures almost all reverse mortgages and which has seen default rates rise.
1 comment:
Reverse mortgage are complicated loans which aren’t free of problems. At time borrowers pull too much equity from their homes. They spend the cash and are unable to afford insurance, taxes and maintenance for the property. Hope so, this new rules will protect borrowers from their own mistake.
Rules for a reverse mortgage
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