Reverse mortgages offer a mechanism for tapping home equity for those who want to stay in their home.
Nearly all reverse mortgages today are government-insured Home Equity Conversion Mortgages (HECMs).
To make the HECM insurance program financially viable, and to insure that HECM reverse mortgages provide retirees with a reliable source of retirement income, the government recently announced three key reforms to the HECM program.
- Replace the Standard and Saver Options with a Single HECM
- Reduce Initial Withdrawals
- Introduce Underwriting