Reverse Mortgages: Planning for the Overlooked Risk

Reverse Mortgages: Planning for the Overlooked Risk

Home equity conversion mortgages (HECMs), or reverse mortgages, provide needed cash for homeowners over the age of 62; a planning tool that helps many individuals enjoy their retirement while living in their home. However, the risk of HECM defaults is having a negative impact on the availability of...

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Bibliographic Details
Published in:Journal of financial service professionals Vol. 73; no. 3; p. 11
Main Authors: Roten, Ivan, Johnston, Jarrod
Format: Journal Article
Language:English
Published: Bryn Mawr Society of Financial Service Professionals 01-05-2019
Subjects:
Financial planning
Home equity loans
Homeowners
Reverse mortgages
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Description
Summary:Home equity conversion mortgages (HECMs), or reverse mortgages, provide needed cash for homeowners over the age of 62; a planning tool that helps many individuals enjoy their retirement while living in their home. However, the risk of HECM defaults is having a negative impact on the availability of the HECM program. Better planning by financial service professionals and individuals will reduce the burden of homeowners, their families, and taxpayers who must cover the financial loss due to default.
ISSN:1537-1816
2381-8875