It was another busy week for all things reverse mortgage news.
Researchers revealed some of the largest roadblocks to reverse mortgage usage among older homeowners, while a new report from Harvard University proposed the use of reverse mortgages as a financially feasible solution to meet the aging in place demands of the United States’ soaring senior population.
In other news, the Department of Housing and Urban Development issued a final rule this week that will subject agency-approved housing counselors to new certification requirements.
And, of course, the Federal Reserve decided to raise interest rates this week and plans to raise rates even further in 2017.
While a lot happened in the past week, here are the top reverse mortgage headlines grabbing the attention of RMD readers in case you missed them:
Researchers Reveal Biggest Roadblocks to Reverse Mortgage Borrowing—While negative misconceptions have largely hindered the appeal and acceptance of reverse mortgages among would-be borrowers, research shows that these afflictions aren’t the only factors preventing senior households from tapping into their home equity later in life.
Harvard: Reverse Mortgages Offer Realistic Solution to U.S. Aging in Place Crisis—With the incoming influx of baby boomers entering retirement age, the number of older homeowners will soar in the near future. While many prefer to age in place, certain challenges will prevent these desires from becoming reality. But here is where a reverse mortgage can be a financially realistic option to help older homeowners alleviate cost burdens and comfortably age in place, according to a report published this week by the Joint Center for Housing Studies at Harvard University.
HUD Issues New Certification Standards for Reverse Mortgage Counselors—The Department of Housing and Urban Development will soon require that housing counselors participating in HUD programs, including the HECM program, gain new certification to offer counseling services to consumers, according to a final rule issued by the agency this week.
What the Federal Reserve Rate Hike Means for Reverse Mortgages—This week, the Federal Reserve decided to raise the benchmark short-term interest rate for the second time in nearly a decade. But while the impact will be more immediate for some forms of home equity lending, the Fed rate hike will have a more muted effect on reverse mortgages specifically.
Credit Shocks More Likely to Jumpstart Reverse Mortgage Buying Decisions—Reverse mortgage borrowers are more likely to have experienced a credit shock during the time leading up to their decision to get a HECM than compared to borrowers using other types of home equity extraction methods, according to recent research findings from Ohio State University.
Written by Jason Oliva