It is no secret that reverse mortgages have many critics. When Home Equity Conversion Mortgages (HECMs) first became available in the late 1980's, several lenders did adopt some questionable practices. However, as these loans have matured, the Federal Housing Administration (FHA) has tightened their regulations. The days when lenders could take advantage of their borrowers are long since over. Unfortunately, it has taken a long time for the industry to shake its negative reputation.
The good news is that the industry is finally Yandex Gamesstarting to get the recognition it deserves. While these loans are not meant to take the place of traditional retirement planning, many esteemed organizations, including the National Council on Aging, now work to educate seniors on these loans.
As many adults are acutely aware, the recent downturn in the economy has impacted retirees' assets and made it harder to save for retirement. An article released by Investment News, an online news source for financial planners, reported that "reverse mortgages should be considered as a very valuable retirement tool by financial advisers of all types." While there will always be critics, many blog owners are noticing this well-deserved change in attitude.
Reverse Mortgage Blog Owners Discuss Possible New Loan Products
Many blogs are also reporting that new loan products might be released in upcoming months. Currently, FHA has extended their $625,500 maximum claim limit on HECMs through 2012. Still, as home values continue to rise, the demand for jumbo propriety loans might also increase. This has owners predicting that a new jumbo product will be released within the year.