Is 2012 the Year FHA’s Reverse Mortgage Program Grows Up?

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FHA News Editor - Here we post articles each week on FHA/VA Government news.

The Federal Housing Administration’s reverse mortgage product, the Home Equity Conversion Mortgage, is an amazing product, maybe even ahead of its time. Developed 22 years ago, the product has been maturing into a viable option just as 10,000 baby boomers are starting to turn 65 each day. But some in the industry feel the HECM program has lost its way and no longer serves those whom it was designed to help. To understand why, one only needs to look back at the last four years. In 2009, the Department of Housing and Urban Development was forced to cut principal limits by 10% to make sure the program broke even. A year later, additional principal limit cuts were made along with an increase in the insurance premiums charged to borrowers.

To read the entire article, please visit:
http://reversemortgagedaily.com/2011/12/15/is-2012-the-year-fhas-reverse...

SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)