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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. 

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SOURCE: Wall Street Journal

URL: http://online.wsj.com/article/SB10001424127887323608504579023100143165032.html