Reverse mortgages are in almost every circumstance a poor mechanism for conserving family wealth. The idea behind a reverse mortgage is that it is given to seniors who want to stay in their homes for the remainder of their days. In exchange for giving up the equity in their homes that they have built up over years, seniors receive cash to allow them to live more easily for the remainder of their days.
Reverse mortgage lenders recognize that baby boomers are aging out with billions of dollars in equity in their homes. It is those billions that the mortgage industry wants to get its hands on. Read more … http://thehill.com/blogs/congress-blog/economy-budget/367058-latest-hud-changes-to-reverse-mortgages-good-for-consumers