SOURCE: Mortgage News Feed
This fiscal year has brought significant changes for reverse-mortgage borrowers and lenders. New restrictions under the Reverse Mortgage Stabilization Act of 2013 seek to make these loans less risky and less prone to default. Home equity conversion mortgages, or HECMs, are for homeowners who are at least 62. They allow the homeowners to draw on their home equity without repaying it as long as they stay in the house. They get the money upfront, and interest is deferred until the borrower dies or moves to a nursing home.
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