FDIC Weighs In On Reverse Mortgages

The Federal Deposit Insurance Corporation (FDIC) noted in its most recent newsletter that the Home Equity Conversion Mortgage (HECM) program has gone through a lot of changes since the FDIC last commented on the program back in 2013.  As pointed out in the article, the reverse mortgage program has become even more attractive with the new provision to protect non-borrowing spouses who have not yet reached the age of 62.  "The U.S. Department of Housing and Urban Development (HUD) now provides a mechanism for an eligible non-borrowing spouse to stay in the home," said Andrea Riche, and FDIC program manager.  Previously, HUD or the private lender was entitled to take possession of the house and in most cases evict the surviving spouse if he or she did not have the means to pay the reverse mortgage balance that was left behind by the borrowing spouse.

Read the entire article here.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez
Certified Reverse Mortgage Professional, CRMP
NMLS# 473353
Toll Free (877) 500-0454
Local (702) 460-6222