Home Shopping: Historic Styling
Investigating a Reverse Mortgage; The GAO Issues a Report
The GAO (Government Accountability Office) has issued a June 2009 report concerning reverse mortgages:
REVERSE MORTGAGES Product Complexity and Consumer Protection Issues Underscore Need for Improved Controls over Counseling for Borrowers
HECMs can provide borrowers with multiple benefits, but they also have substantial costs and are relatively complex. HECMs allow seniors to convert their home equity into flexible cash advances while living in their homes. Additionally, the borrowers or their heirs can fully pay off the HECM by selling the home, even if the amount owed exceeds the current home value. However, HECMs also have large insurance and origination costs. Furthermore, the long-term financial implications of a HECM can be difficult to assess because the borrower’s remaining home equity depends on the amount of cash advances and interest rate and house price trends.






