A recent Fox Business segment featured a personal finance expert who outlined recent changes to the reverse mortgage program, calling the product a good choice “in the right circumstances.”
The three-minute segment aired on Sept. 30, when the first round of changes to the federally-insured Home Equity Conversion Mortgage (HECM) program went into effect. Jordan Goodman, known as “America’s Money Answers Man,” briefly explained the new rules, but was unaware that the financial assessment does not go into effect until mid-January.
“They want you to have some equity for future years, and not get it all at once and go blow it in Atlantic City,” Goodman said of the reasoning behind limiting the amount people can borrow and how much they can access upfront and within the first year.
Goodman characterized reverse mortgages as a “loan of last resort” that make sense when a borrower has no other resources to tap.
“In the right circumstances, it could be good,” he says.
Watch the full segment:
Written by Alyssa Gerace