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Reverse Mortgage Tips

Vera Gibbons spoke with Julie Chen about when is a good time for a reverse mortgage and what to look out for.

FHA: No PLF changes for reverse mortgages

FHA Commissioner Brian Montgomery said the HECM program is still experiencing the impact of policy changes made last year, and that the agency is optimistic it will continue to improve over time.

“Revisions to the HECM principal limit factor that we implemented in October 2017 have shown some progress in improving the financial performance of the 2018 HECM book of business, and we expect that we will see additional improvements with our 2019 book of business,” Montgomery said on a call with reporters Thursday.

We fully recognize the burden we’ve placed on the industry and our network of housing counselors,” he added. “Every year we more or less rewrite the script. So one of our guiding principles this year was we want to protect the PLF, we want to stave off any additional premium increases.”

While current PLFs will stick, Montgomery alluded to other potential changes down the road, including rules to address some of the program’s back-end servicing issues.

What is the downside of reverse mortgages?

My in-laws are elderly (in their mid and late 80s) and own their home outright. The in home care expenses for my father in law are mounting and reverse mortgaging their home seems to be the answer.


This product has become ever more popular with the aging society. Because of this these loans are changing almost daily. The downside to this type of loan is your house is appreciating after you lock in the payment rate.