Reverse Mortgages Continue to Evolve

New changes designed to limit defaults on reverse mortgages could end up costing borrowers more.

(Image credit: bbbrrn)

With almost all new reverse mortgage loans backed by the federal government, Uncle Sam continues to wield his power to overhaul the Home Equity Conversion Mortgage, or HECM, program. The goal is to reduce a surprisingly high default rate on the loans—about 10%, far above the default rate on regular home mortgages.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Rachel L. Sheedy
Editor, Kiplinger's Retirement Report