New Rules for Reverse Mortgages
Changes to the rules around reverse mortgages can now be made by the Federal Housing Administration – which insures almost all reverse mortgages – thanks to recent rulings by Congress. The changes will likely make it more difficult for older homeowners to qualify for reverse mortgage loans, resulting in less borrowing ability but also a lower default rate. The new rules will also decrease the practice of making big ‘lump sum’ payments via reverse mortgage. The new limits to the program will be announced soon.
SOURCE: Wall Street Journal