Popular reverse mortgage program takes 10 percent ‘haircut’
While reverse mortgages have become a bigger part of the senior
population’s financial picture, the nation’s most popular program has
undergone a mandatory change that will reduce the total proceeds
available to Federal Housing Administration (FHA)-insured reverse
mortgage borrowers.
The move is in response to a projected $798 million shortfall in the
FHA’s budget for the Home Equity Conversion Mortgage (HECM) in fiscal
2010. The fiscal year for the U.S. Department of Housing and Urban
Development — the agency that oversees FHA — began Oct. 1. FHA is now
shouldering a greater portion...
Read more
Share This:
SeniorClarity News Home