Questions Arise Over the Reverse Mortgage Program's Safety
New questions about the safety of the reverse mortgage program are coming up. These questions are surrounding reverse mortgage foreclosures in particular as 2016 saw a 646% rise in reverse mortgage foreclosure, according to data from the California Reinvestment Coalition.
"New guidance from the Department of Housing and Urban Development that required servicers to make speedy decisions about homeowners in default likely contributed to the significant gain, while HUD has also emphasized that the majority of foreclosures consist of property transfers after the last remaining borrower has died," reported Reuters columnist Mark Miller, according to Reverse Mortgage Daily.
"Between April 2009 and December 2016, the death of a borrower represented 99% of all HECM foreclosures, according to HUD data."
Though, when it comes to the overall safety of reverse mortgages, expert are stating that those who want to live in a home until they pass could be absolutely fine with a HECM.
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