The Government’s Redesigned Reverse Mortgage Program

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.

  1. Replace the Standard and Saver Options with a Single HECM
  2. Reduce Initial Withdrawals
  3. Introduce Underwriting


Read the full article on the Center for Retirement Research at Boston College (PDF) >

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