Posted To: MND NewsWire

A recent post on the Urban Institute’s (UI’s) Urban Wire blog focuses on some overlooked data on FHA’s Home Equity Conversion Mortgage (HECM) program. The program guarantees loans, commonly called reverse mortgages, for homeowners 62 years and older. These loans allow homeowners to withdraw the equity from their home, either in a lump sum or in monthly payments. The loan does not need to be paid back until the homeowner leaves or sells the house. UI analysts Karan Kaul, Laurie Goodman, and Sarah Strochak write that seniors are currently “sitting on a mountain of housing wealth” (estimated in 2017 at $3 trillion) and are anxious about their finances. Therefore, one might expect HECM to be a well-used program. But even as the number of older Americans has grown, participation in the program has…(read more)

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Source: Mortgage News Daily