What the HECM is a Reverse Mortgage anyway?

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WHAT? REVERSE MORTGAGE?

You know, for years we never had this problem. All mortgages were “forward” mortgages. They all amortized. They all started out high and ended up at zero. And then, in 1988, along came a little guy in Minnesota with a crazy idea. What if we started out low, and went up? Hence, the Reverse Mortgage was born.

First there were only FHA programs. Then Fannie Mae jumped into the hot tub with FHA. Next, Transamerica and Household Bank. Finally, some private banks like Virtual Bank climbed in also.

Then, oops, over 50 million seniors? Might be some risks to consider. So the process started to reverse itself. First Fannie Mae climbed out of the hot tub. Then the insurance companies and private banks jumped out too. Finally, even FHA eliminated half its programs and here we are today with essentially three variants of reverse mortgages to market.

Want to learn more? Listen to this presentation. Things have been changing quickly; I might not be 100% right. But you will come away knowing more than you started with.

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