Investor Business Daily recently published Reverse Mortgages Get Popular; Rule Changes Enhance Appeal which goes over the changes that stemmed from HERA. Journalist Kathleen Doler writes that the new federal rules, a tough housing market, and devalued retirement investments will likely spur more seniors to consider reverse mortgages.
The article describes one Rancho Bernardo, California woman who used a reverse mortgage when she couldn’t make the mortgage payment after her husband died. Ms Acorn started looking for a reverse mortgage in 2008 but her mortgage broker told her to wait until the changes from HERA became active.
Due to the new higher lending limits in her area, Alcorn’s reverse mortgage paid off her entire mortgage and put $14,000 in her pocket. Prior to the rule change, the reverse mortgage would have cost her $22,000, what with the required fees and lower lending limits. Now, she can stay in the home as long as she lives, paying just taxes and insurance. "Every month when it comes time for the (old) payment, I just giggle," she said.