November White Paper | Reverse Mortgages
Last week, AFSA’s State Government Affairs released its November white paper on reverse mortgages and how legislation and regulations have imposed changes for consumers.
The origin of reverse mortgages began in 1987 when the Home Equity Conversion Mortgage (HECM) program was first established and then subsequently insured by the Federal Housing Administration (FHA) in 1989. The 1990’s and 2000’s saw an increase in consumer utilization of reverse mortgages, especially with the retirement-age population of the country.
The landscape of reverse mortgages was altered throughout the 2010’s by frequent legislation and regulation, increasing mortgage insurance premiums, lowering the interest rate floor, creating new Housing and Urban Development (HUD) policies to make reverse mortgages safer, and implementing non-borrowing spouse protections. In recent years, the country has seen several attempts to further modify and regulate reverse mortgages at the state level.
This and other SGA white papers can be found in the SGA resources section of AFSA’s website.
November 8th, 2024
