Banker & Tradesman: Reverse Mortgage Goes Mainstream

The reverse mortgage is going mainstream, says a recent article by trade publication Banker & Tradesman. The borrowing age is dropping as younger consumers look to the loans to help manage the risk of their investment portfolios, the article writes based on a recent presentation to credit union industry members by representatives from MetLife.

Banker & Tradesman reports:

“…When reverse mortgages, officially known as home equity conversion mortgages (HECM), were created, they were designed for elderly homeowners who were house-rich but cash-poor, to draw on home equity to support living expenses.But reverse mortgages may become part of a growing trend to include home equity as an integral part of retirement planning and addressing income shortfalls in retirement. That’s according to a study authored by MetLife Mature Market Institute in partnership with the National Council on Aging.

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Some younger borrowers whose assets and income may have been negatively impacted by the recession, are turning to reverse mortgages as a financial “bridge” to postpone the need to apply for Social Security…”

View the original article.

Written by Elizabeth Ecker

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