Within the past week major changes have come about the
reverse mortgage industry within the United States. Legislation in congress has
adjusted the "Home Equity Conversion Mortgage Program" otherwise
known as the reverse mortgage. This has been in the balance for some time now
as a means of changing consumer perception of the type of loan. Over the past
few years the perception has been if there is a default on a reverse mortgage,
the borrower will be eliminated from the home and dive deeper into financial
crisis. The main goal during talks in Washington has been strengthening
borrower protection.
In order to
increase borrower protection from loan companies, background checks will make
it much harder to qualify for reverse mortgage loans and prevent borrowers from
being booted from their homes. For these
changes to seamlessly occur, a strict financial assessment will take place as a
means of protecting lender from defaults. This change will also set limits on
on the amount borrowed and withhold capital to cover property taxes and
homeowner insurance. Another major change involves surviving spouses of
borrowers being protected from eviction.
With these changes set to take place as early as October 1st, 2013 the
public perception is bound to change the industry and create a positive
outlook for both borrowers and lenders.
For more information you can contact us at 888-866-8152, email us at info@reversemortgagela.com, or visit our site at www.reversemortgagela.com.
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