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.

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Rachel L. Sheedy
Editor, Kiplinger's Retirement Report