The Latest News About Upcoming Reverse Mortgage Changes

The Reverse Mortgage Stabilization Act was signed into law on August 9th. As we’ve reported earlier, this new law gives the Department of Housing and Urban Development (HUD) the authority to strengthen the HECM Reverse Mortgage program by making significant, but not overly drastic adjustments. We expect HUD to announce these changes before the end of August.  Some of the changes HUD is expected to make include: • Financial assessment of borrowers• Mandatory set asides or escrows for tax and insurance payments • Restrictions in the amount allowed in a lump sum payout • Inclusion of all spouses on reverse mortgage loans The good news is that these modifications will make the program stronger and more stable. The bad news is that it will likely become harder to qualify for a Reverse Mortgage after HUD’s changes go into effect. If you are considering this product – you may want to talk to a lender in the near future. Will You Still Qualify in the Future? Talk to a Prescreened Reverse Mortgage Lender About Your Options Estimate Your Current Reverse Mortgage Loan Amount Now