Tag: Reverse Mortgages
The brief’s key findings are: In any loan program, a key objective is balancing the twin goals of high take-up rates and low default rates. In 2013, the federal government announced new rules to curb default rates of reverse mortgages by limiting initial withdrawals and requiring underwriting. To assess the effects of the new rules,…
The brief’s key findings are: Reverse mortgages, which allow retirees to tap their home equity, are insured by the government. The financial crisis hurt both the government’s insurance fund and the borrowers. Declining home prices led to losses when homes were sold. More borrowers defaulted. In response, the government has redesigned the program by: creating…
