How new reverse mortgage rules affect retirement plans

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The federal government has clamped down on reverse mortgages, issuing a new set of rules that make some loan amounts smaller, fees higher, and drawdowns less flexible What will the changes mean from a retirement-planning perspective? We’ll get to that in a moment. But first, here are some basics on reverse mortgages. Reverse mortgages allow […]

Reverse mortgages get smaller, fees rise

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If you’ve been thinking of getting a reverse mortgage, September offers a model-year closeout sale opportunity. A new set of rules governing Home Equity Conversion Mortgages (HECMs), the most popular type of reverse loan, was just issued by the U.S. Department of Housing and Urban Development, following up on Congressional action last month authorizing reforms. […]

Government set to crack down further on reverse mortgages

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The federal government is getting ready for round two of the Great Reverse Mortgage Crackdown. Earlier this year, the Department of Housing and Urban Development eliminated one of the most risky reverse mortgage programs – upfront lump-sum loans issued at fixed interest rates. Now, it is proposing to further discourage big lump-sum reverse mortgages by […]