In August, the Brookings Institution took a look at whether or not a Reverse loans should be considered as part of a retirement plan.
Although their study recognized that initially there were problems with the HECM in the early years of it’s existence, they now acknowledge that due to recent regulatory changes, they are a very safe option that allows anyone over age 62, to continue to live in their home as they age.
Here is a synopsis of the article that I will place into two separate posts.
Brookings: Reverse Mortgage Can Play Viable Role in Retirement
Posted By Cassandra Dowell On August 21, 2014 @ 6:00 pm In News,Reverse Mortgage |
As data show how many Americans lack sufficient retirement savings, seniors should consider a reverse mortgage to turn housing equity into cash and remain in the home, says research nonprofit The Brookings Institution.
“Many retirees don’t have access to or knowledge of retirement financial products to provide security,” writes Benjamin H. Harris in a recent The Brookings Institution opinion post .
“While reverse mortgages showed signs of life through the Home Equity Conversion Mortgage program, which originated 400,000 reverse mortgages between the inception of the program in 1989 and 2007, the market remains plagued by reports of improper lending behavior and misunderstanding among borrowers.”