Reverse Mortgage Loan Blog

There is a piece on today’s ChicagoTribune.com about the housing bailout bill currently in congress and it has this to say about reverse mortgages:

Reverse mortgages allow older Americans, generally 62 and older, to get a lump sum or a monthly check that comes out of their home equity. They do not have to pay the money back until they stop living there permanently or their heirs sell the house. The bill attempts to address two problems: fees and high-pressure salesmen. First, it limits origination fees on reverse mortgages at 2 percent of any loan up to $200,000 and 1 percent beyond that, up to a maximum of $6,000. The bill also states explicitly that borrowers cannot be forced to purchase a financial or insurance product as a condition of qualifying for a reverse mortgage.

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